Commercial Umbrella Program
This program provides two base forms.
Commercial Excess/Umbrella Liability Coverage, which includes two coverages whose application depends upon provisions or omissions in the underlying policies:
- Coverage E - Excess, which provides excess coverage for damage and injuries covered by underlying insurance, and
- Coverage U - Umbrella, which includes umbrella terms that apply in excess of a self-insured retention for limited types of general liability exposures not covered by underlying insurance.
This form is designed for situations where the carrier seeks to write essentially "follow form" coverage heavily dependent on the provisions of underlying policies, with a limited "backstop" for general liability exposures that may be unaddressed in the underlying layers.
Commercial Umbrella Liability Coverage, which includes two coverages that operate independently of the underlying layers:
- Coverage L - Bodily Injury Liability and Property Damage Liability; and
- Coverage P - Personal and Advertising Injury Liability.
These coverages provide the terms that apply in excess of the retained limit.
This program is distinguished by providing a choice between two base forms, each embodying a different approach toward insuring a risk, and each of which can be written over underlying policies from any industry source.
In addition to the base forms, the AAIS Commercial Umbrella Program includes a wide range of endorsements for each base form.
Most of the endorsements are exclusions which allow underwriters to exclude, where applicable, whole categories of coverage (auto liability, contractual liability, professional liability, products/completed work, etc.) or specified exposures (designated autos, designated premises, designated projects, etc.).
In developing an independent manual, an affiliated company may draw on the AAIS sample manual published for the Commercial Umbrella Program. Sample manual rules describe the program, the basic policy forms, and the various multistate endorsements available for use with each form and provide examples of eligibility requirements, premium determination procedures, and individual risk premium modifications.
Companies that use the AAIS Commercial Umbrella Program develop independent manuals that reflect their own eligibility requirements, including minimum underlying limits and the minimum premium, and rating mechanisms for umbrella and/or excess coverage.
Insurance companies seeking more information on AAIS products and services can contact Rick Maka, director of marketing and strategic alliances, at our contact form , or by calling 800-564-AAIS, ext. 222.