Insurance for Umbrella/Excess Liability

Loss payments and jury awards are rising every year. There are constantly emerging issues such as scientific advancements and social inflation leading to new links and increased awareness of what is causing bodily injury and property damage. All this is making higher limits of liability more and more vital to add to your insurance portfolio.

Ineligible Umbrella/Excess Liability

Please note we cannot offer coverage to the following:

• Primary underlying carrier is not rated B++ or better
• Foreign domiciled primary underlying carriers (except for Lloyds of London)
• Artisan contractors located in AK, CA, CO, LA or WV
• General contractors located in AK, AZ, CA, CO, LA, NV or WV
• Risks located in AK, LA or WV

Coverage Available for Umbrella/Excess Liability

• Low minimum premiums starting at $500 per layer
• No self-insured retention
• Coverage can be provided to risks that meet USLI eligibility on a primary basis

Coverage Limits Available for Umbrella/Excess

Excess general liability limits up to $5,000,000 except in the following situations:

• Underlying limits of $500,000 – maximum limit of $2,000,000
• Located in AL or MS – maximum limit of $1,000,000
• Habitational exposures that are:
  – Between four and seven stories in height – maximum limit of $3,000,000
  – More than seven stories – maximum limit of $1,000,000
  – Apartments subject to maximum total of $3,000,000

Claim Example for Umbrella/Excess Liability

Fast Food Restaurant: The Illinois Supreme Court ruled a fast food restaurant can be held liable for the death of a customer who was eating in the restaurant when a car crashed through a wall and plowed into his table (Marshall v. Burger King).

Contractor: A three-person flooring company was hired by a general contractor for a condo conversion project. The general contractor did not like the way the floor was laid and asked the artisan to refinish the floor. When the subcontractor completed work for the day, they cleaned up and left the scraps, tools and finishes in the unit. That night there was a fire. It was alleged that the proximate cause of the fire was spontaneous combustion of the sealant left behind by the subcontractor, resulting in a settlement of $3,500,000+.

Retail Store: A variety store sold a small propane grill to a customer. The propane tank exploded, burning eight people, some severely. Even though evidence indicated that the customer used the stove in an inappropriate manner by placing a pot that was too large on the burner, the store was held liable for products coverage. The case was settled for $3,900,000+.