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The AAIS Commercial Umbrella/Excess Liability Program is designed to simplify the task of providing protection against catastrophic liability claims that exceed the limits of underlying policies.
The base policy form has a unique structure that minimizes the possibility of coverage gaps or unintended exposures:
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Coverage E (Excess) provides "follow form" coverage in excess of required limits in any type of underlying liability policy, AAIS or non-AAIS that covers commercial auto liability, commercial general liability, professional liability, and other liability exposures.
The follow form coverage automatically adheres to the trigger (occurrence or claims made) in the underlying forms, even when triggers differ among underlying policies.
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Coverage U (Umbrella) provides "drop down" coverage for premises and operations exposures not addressed and not excluded in the underlying commercial general liability policy. While written to provide peace of mind to insureds, Coverage U in itself should not create additional exposures for insurers that do a thorough job of structuring and rating their underlying policies.
This program also provides:
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Endorsements for excluding whole categories of exposure (autos, watercraft, professional liability, etc.)
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Endorsements for excluding specific exposures (designated autos, designated premises, designated products, and designated work)
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Absolute exclusions for pollution and lead liability
Because the AAIS Commercial Umbrella policy can be written over underlying policies from any industry source, it is a good tool for writing layered coverage, wherein various insurers and reinsurers assume liability for losses between specified amounts.
Rules and rating for a commercial umbrella product will depend heavily on the unique characteristics of your commercial book of business. AAIS provides a manual with sample rules and rating information for its Commercial Umbrella program, and is prepared to assist companies in establishing eligibility requirements, minimum premiums, underlying limits, and self-insured retentions, as well as filing the program. Educational resource material explaining the coverages provided by the policy is also available.
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