Unless a business is dealing with a claims frequency issue or needs to satisfy a lender or contractual requirement, the motivation to purchase high umbrella limits through excess layers of coverage, will often be in order to protect against specific claims or class action suits they believe they could be exposed to.
Having an umbrella/excess liability insurance policy that is follow-form of the underlying policies is not always beneficial for the insured. Depending on the breadth and scope of coverage in the underlying policies and their various exclusions, an excess policy with its own terms and conditions may prove to be a better option.
The rapid evolution of how business is conducted today is truly remarkable when taking a step back and considering where we were not too long ago. This presents different exposures than previously accustomed to and the manner in which risk professionals evaluate business exposures needs to be constantly revisited and refined. One interesting perspective that […]
brella insurance programs can be great options for insureds looking to purchase adequate limits of excess liability insurance at reasonable premiums. Umbrella insurance programs are typically designed for specific industries and thus, there can be a program for real estate, another for manufacturing, etc. Some may even be more specific to a particular segment of […]
Insurance requirements imposed on third parties will often require additional insured status be extended on a primary and noncontributory basis. The intent is to make the named insured’s general liability policy primary and thus, respond first to protect the additional insured and not to compel the additional insured’s own general liability policy to contribute to […]
A unique feature of umbrella liability policies (compared to excess liability policies) is the drop down provision. In the event of exhaustion of an underlying policy’s aggregate limit, the umbrella policy will function in place of the depleted underlying limit for the remainder of the underlying policy period (assuming the policy periods align, which is […]
In a previous post, I suggested avoiding the non-concurrency of expiration dates between an umbrella/excess policy and its underlying policies. The excess layer may take the position that the underlying policy limits are not exhausted to trigger coverage under the excess layers if the limits were not all consumed during the excess layer’s policy period. […]
Given the upheaval in the umbrella/excess liability insurance marketplace with many programs, particularly in the real estate industry, significantly increasing premiums or leaving the market entirely, companies have been compelled to review and reconsider their excess liability limits. Many understandably are reducing their limits on renewal due to the significant premium increases. Nevertheless, this leads […]