Archive for Excess
Automobile Excess Liability
Automobile excess liability insurance is available to drivers who cannot obtain more than the minimum liability insurance limits needed to satisfy the financial responsibility requirements in their state because of age, occupation, vehicle use, or driving record. It is also available to drivers in assigned risk plans.
Automobile Insurance Plans Excess Liability
This is excess bodily injury and property damage liability limits over the basic automobile liability insurance coverage limits provided by the Automobile Insurance Plans (AIPs) in various states. Optional medical expense coverage and uninsured motorists coverage is also available. The premium charged is based on the primary policy premium.
Buffer Layer Liability
Buffer layer insurance may be needed to increase the primary underlying limits to meet the umbrella or excess carrier’s underlying limits requirements when excess and umbrella liability market conditions are tight.
This is a special form of umbrella liability designed for marine accounts that operate vessels or use docks. It covers protection and indemnity, general average, collision, salvage charges, sue and labor, and all other legal and contractual liability. It also covers employers liability; liability under admiralty laws and the Longshore and Harbor Workers Compensation Act; automobile liability; and general liability.
Capacity or Excess Property Insurance
When a single company cannot provide the property coverage needed for a particular risk, coverage can be shared proportionally with another carrier or on an excess basis. With excess coverage, the additional company or companies do not respond until their specific layer is penetrated. As a result, pricing at the primary levels takes loss frequency into consideration while excess layers usually price for only catastrophic events. Underwriting techniques vary based on whether the property exposures are at a single location or spread over a number of them.
Excess FDIC Insurance
The Federal Deposit Insurance Corporation (FDIC) insures bank deposits up to certain maximum limits per account. A limited number of carriers insure for amounts that exceed this maximum if the financial institution’s bankruptcy causes the depositor financial loss that exceeds the FDIC guarantee.
Excess Fidelity Bonds
Excess fidelity bonds may be written for financial institutions or other commercial entities as excess over a deductible amount or as specific excess. Many large banks or commercial entities regularly require large fidelity coverage limits, especially in cases that have a significant exposure to money or other negotiable instruments.:
Excess Flood Insurance
This coverage is written as excess coverage over the National Flood Insurance Program (NFIP) on a following form basis. It triggers when the NFIP limits are exhausted. It is available countrywide for both residential and commercial properties that meet certain underwriting eligibility.D569
Excess Liability (Commercial)
Excess liability insurance may be written over any form of primary liability insurance, including commercial general liability, commercial automobile liability, employers liability, and professional liability. The additional liability limits are needed because of the litigious nature of our society and the attitude of courts and juries in awarding damages. This insurance may be written as excess over primary liability insurance or as excess over a self-insured retention or deductible. This is not the same as a commercial liability umbrella policy because it does not provide any additional coverage. This is a follow form policy.
Excess Liability (Over Self-insured Retention)
Most self-insurers do not retain the entire amount of loss. In most cases, excess coverage is tied in with the self-insurance program. With liability insurance, both aggregate excess (sometimes referred to as stop loss) and specific excess coverage is available. Aggregate excess indemnifies the insured for the amount that the total loss for the period exceeds a set percentage of the normal premium for the period. Specific excess gives the insured protection above the self-insured retention for each accident or occurrence.
Excess Liability (Personal)
Personal lines excess liability insurance protection should be an important part of the insurance programs for certain personal lines customers. Many households that have substantial incomes and property could be seriously financially damaged by a large liability judgment against them. Other families may have more modest assets but have significant exposures such as waterfront property, watercraft, teenage drivers, or significant community involvement. A large settlement could devastate these families. A number of markets use excess liability policies or personal umbrella policies to provide personal and professional excess liability.
Excess Malpractice and Professional Liability
Excess coverage for doctors, other professionals, hospitals, and businesses is available over primary coverage, self-insured plans, captive plans, and Joint Underwriting Associations (JUAs). A number of specialty carriers offer professional liability coverage on a straight excess basis over and above the primary limits that the underlying coverage provides. Coverage is written on a following form or a claims-made basis over a primary policy written on an occurrence basis. In addition, markets are available to write excess liability coverages for other professionals, such as accountants, architects, engineers, and attorneys.
Excess Marine Liability
Excess limits over primary marine liability limits is needed because of the trend toward larger suits and higher settlements. Marine employers’ liability and commercial general liability limits on policies for marine businesses, such as boat builders and repairers, marine contractors, dredgers, and other vessel services, can be extended by using specialty markets that write excess marine liability limits. Liability coverages for marina operators, stevedores, charterers, wharfingers, and terminal operators are written as excess over self-insured retention (SIR) programs or over primary policies.
Excess Maritime Employers Liability
Employers liability for maritime risks usually falls under the jurisdiction of either the United States Longshore and Harbor Workers Compensation Act (USL&HWCA) or admiralty jurisdiction via the Jones Act. Coverage for workers involved in offshore oil drilling, marine diving or dredging, employed on fishing vessels, or serving as crew members on tugs, barges, ferries, scows, work boats, and pleasure yachts can be difficult to place because the work they perform is dangerous. Certain specialists well acquainted with maritime exposures provide excess maritime employers liability.
Excess Medical Stop Loss Coverage – Self-Insured Risks
Stop loss insurance for self-funded employee benefit plans varies with the size of the insured group and the individual client’s plan requirements. The package of benefits can include aggregate and specific stop loss insurance, medical conversion for terminating employees, group life, accidental death and dismemberment (AD&D), and a fully insured short-term disability plan.
Excess or layered property insurance may be written on any large commercial property account. This layering approach works well when the same entity owns multiple locations. Layering often starts with a primary coverage equal to the probable maximum loss (PML) followed by additional layers at a fraction of the primary layer’s cost. The farther away the layer is from the working layer, the lower the rate. Limits and coverage availability can vary significantly based on geographic location.
Self-Insurance Retention (SIR) Programs
Self-insured retention (SIR) programs allow insureds to retain more control of their assets. While certain programs may have low retention levels, most exceed $100,000. The SIR amount often increases as the program matures due to effective asset planning. The insured is responsible for all claims within the SIR. Most insureds choose a third-party administrator (TPA) to handle those claims. A number of large insurers and brokerage firms provide TPA services for their accounts on either a fee basis or as part of a total risk management services program. Advantages of SIRs include reductions in insurance costs, use of the cash flow until a loss actually occurs, at which time the insured sets up a reserve fund to pay losses instead of the insurer paying, and better control of loss prevention activities. SIR programs are customized for each insured. Coverages that SIR programs often include are workers compensation, auto liability, and commercial general liability.
The market for terrorism coverage changed dramatically on September 11, 2001. Coverage availability and pricing varies significantly, based on geographic location and type of industry.
Umbrella Liability (Commercial)
These liability coverage forms provide excess general liability, automobile liability, and employer’s liability limits. They also provide the insured with an element of protection against exclusions and gaps in the primary coverage forms or policies. Umbrella liability coverage is triggered when the limits of the primary insurance are exhausted or when a claim that is excluded under the primary is covered under the umbrella. Coverage applies only to the scheduled underlying liability coverages.
Umbrella Liability (Over Claims-Made Primary)
An umbrella that covers a claims-made primary policy must be worded so that it is also excess over scheduled underlying coverage forms or policies that are occurrence based. The claims-made portion of the umbrella policy must track with the claims-made extended reporting period features of the underlying policy or policies, and the occurrence portion of the umbrella must track with the underlying occurrence basic coverage forms or policies.
Umbrella Liability (Personal)
This is umbrella liability coverage for individuals instead of corporations. Executives and professionals are excellent prospects. It increases the existing primary personal liability limits of insurance by providing additional limits. Coverage applies to personal, automobile, aircraft, watercraft, and employers’ liability, and professional liability or malpractice for professionals but only if such underlying policies are scheduled. Umbrellas often provide broader coverage than the scheduled underlying. A self-insured retention applies when the umbrella provides coverage for a loss that is not covered in the underlying. The amount of the self-insured retention varies among companies.
Workers Compensation Excess Insurance
This coverage is an important part of any self-insured workers compensation program. The insured first must qualify as a self-insurer and then post the required bond with the state industrial commission. Because loss experience can be unpredictable, the insured purchases excess insurance that triggers above a specified retention level. The excess insurance carrier pays losses above the insured’s retention up to an agreed amount. The excess carrier may also offer additional services to the insured, such as claims handling, loss control, and various record keeping services.