Commercial Umbrella / Excess

Product Features

• No self-insured retention
• Follow-form defense cost trigger
• Ability to include coverage for automobile liability, employer’s liability and professional liability

Why is Coverage Necessary?

• Protect your business from a catastrophic loss
• The following issues are emerging and will create a greater need for protection:
  -   Social inflation
  -   Scientific advancements
  -   Court decisions
  -   New links to causes of bodily injury and or property damage
• The average jury award for general liability premises operations has risen by 10.5% each year since 1994
• The average jury award for automobile liability has risen by 27% each year since 1994
• The average claim takes seven years to go through investigation, discovery, trial and jury decision
• A $250,000 loss today will be worth $1.2 million in seven years; a $1 million primary policy will not be sufficient

Claims Examples

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 completedwork 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+.

Habitational:
A tenant of an eight-unit apartment building started a fire in his kitchen while cooking. The fire spread to the next unit trapping a child who eventually died from the burns. It was determined that the apartment owner was liable because the smoke detectors were not functioning as the batteries had been removed from the devices. The case resulted in a settlement of $5,000,000+.

Child Care:
A three-year-old child suffered heat stroke and extensive brain damage after being left in a hot vehicle by employees of a child care center. Within a few months of the incident, the child’s medical expenses had already exceeded $1,000,000 and will cost millions of dollars more in the future, far exceeding the limits provided by the child care’s primary policy.

Restaurant:
A mezzanine collapsed during a Christmas party causing injury to multiple attendees. The case resulted in a settlement of $2,897,000.

*Coverage may not be available for all accounts or in all states

*Applications will apply to most markets but in certain circumstances additional applications may be needed

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