Umbrella and Excess Liability

 

Important information about COVID-19

Important information about COVID-19

Umbrella Liability

What is Umbrella Liability Insurance?

Umbrella liability insurance is a layer of coverage above the primary layer, but below the excess layer. It provides additional limits above primary coverages and may include coverages not included in the primary. It takes effect once primary policies have exhausted their limits, with the umbrella policy then providing coverage up to its limit.

Why does your business need Umbrella Liability Insurance?

For more than a half-century, we have been customizing commercial umbrella solutions for clients in a world where high exposure liability claims are common and can be crippling. We attempt to design a lead commercial umbrella insurance solution that is right for each business, choosing from a variety of flexible coverage features.

  • When it becomes difficult to estimate the probable maximum loss potential for your liability exposures, umbrella insurance helps provide added protection
  • Umbrella insurance can close coverage gaps and offer added layers of protection if the underlying placements exhaust all resources
  • A smartly crafted lead umbrella insurance policy is one of the main lines of defence in today’s increasingly litigious society 

What does Umbrella Liability Insurance cover?

Coverages available include:

  • Excess General Liability
  • Excess Commercial Auto Liability
  • Excess Employers' Liability
  • Excess Product Liability
  • Excess Marine Liability
  • Excess Energy Liability
  • Excess Premises Liability
  • Excess Contractors Liability
  • Limited Excess Professional Liability
  • Up to $15M limits in the first $100M of a “tower”
  • Available capacity of up to $25 million
  • Admitted and non-admitted forms available upon request
  • CrisisResponse® and Excess Casualty Crisis Fund Insurance:
    • First dollar drop-down coverage subject to terms and conditions of endorsement language
    • Up to $250,000 outside of the umbrella policy limits to pay for certain expenses associated with managing a crisis event
    • An additional $50,000 for the fees of an approved public relations or crisis management firm
  • Multiple policy forms: occurrence, claims-made, and integrated occurrence (claims made with occurrence reporting capabilities)

 

Important information about COVID-19

Excess Liability

What is Excess Liability Insurance?

Excess liability is a layer of insurance above both primary and umbrella layers of coverage. Excess is usually “follow form” in a client’s “tower” of coverages and helps provide a critical safeguard against catastrophic loss — from train derailments to wildfires to major oil spills, and more. Excess insurance takes effect when the layers below it have exhausted their respective limits. It may also be purchased as a separate product and sit above another carrier’s primary or umbrella coverages.

Why does your Business Needs Excess Liability Insurance?

With assets on the line, our clients are assured by the knowledge that we have handled complex, high-limit casualty claims —including cases with alleged damages from $100 million to $1 billion for catastrophic losses.

  • When it becomes difficult to estimate the probable maximum loss potential for your liability exposures beyond both primary and umbrella insurance coverages, excess casualty insurance helps provide protection against catastrophic losses
  • Excess casualty can close coverage gaps and offer added layers of protection if the underlying placements are exhausted of all resources. 

What does Excess Liability Insurance cover?

Available coverages for Excess Liability include:

  • Excess General Liability
  • Excess Commercial Auto Liability
  • Excess Employers' Liability
  • Excess Product Liability
  • Excess Marine Liability
  • Excess Energy Liability
  • Excess Premises Liability
  • Excess Contractors Liability
  • Limited Excess Professional Liability
  • Excess follow form in the mid excess attaching at $25M up to $100M or, alternatively, to provide excess follow form in the high excess attaching above $100M of the tower
  • Minimum attachments of $2-5M with exceptions for pipelines ($10M), refineries ($25-$50M), mining ($5-10M), and transportation ($10M)
  • Follow-form excess liability limits available up to $50 million
  • Catastrophic, high excess limits available up to $50 million with a minimum attachment above $100 million

 

Target Classes for Umbrella and Excess Liability Include:

  • Automobile, bus, truck manufacturing (for high-excess placements)
  • Commercial real estate (non-habitational) (for mid-excess and high-excess placements)
  • Financial institutions
  • Food processing and distribution (for mid-excess and high-excess placements)
  • Property management operations/services
  • Technology and manufacturing
  • Upper middle market retail trade
  • Power generation/utilities
  • Oil petrochemical process/refining/exploration/production/drilling/oilfield service contractors
  • Mining
  • Renewable and alternative energy

 

The AIG Advantage

  • Deploys a broad appetite for risk with industry leading responsiveness and the ability to write worldwide exposures
  • Works with clients to build strong, long-term partnerships — some decades long — with consistent underwriting throughout insurance market cycles
  • Draws on long-established market knowledge, experience, and expertise to provide clients with manuscript, customized solutions by experienced underwriters with local capabilities and who are empowered to make decisions
  • Exceptional flexibility in customizing solutions to meet individual client needs
  • Ability to provide admitted local policies in the USA and worldwide jurisdictions that are written in conjunction with Canadian policy placement
  • Provides clients CrisisResponse®, a built-in enhancement to excess casualty’s commercial umbrella liability policy, and provides policyholders first-dollar coverage and the professional expertise to respond effectively, helping to minimize ultimate damages in a casualty crisis
  • Provides clients with coverage triggers of occurrence, claims made and integrated occurrence (umbrella policies)
  • Employs dedicated claims units focused on high severity claims for clients’ complex, national accounts, mass tort, and construction defects
  • Helps maximize client savings during the claims resolution process by having our claims professionals work closely with our structured settlements department
  • Draws on AIG’s financial strength: rated A+ by S&P, and A by AM Best

 

Related Documents

Excess Liability

Appetite Guide

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