Large Losses for Small Businesses Can Turn Things Upside Down

// April 28, 2016
Reading Time: 3 minutes


If your customer is operating a business, the need for primary insurance coverage is evident; however, how often do you reach beyond that coverage request and provide a customer with a quote for excess or umbrella coverage?

In our litigious world, liability suits brought against business and building owners are only increasing. A simple slip and fall or a faulty door can lead to a lengthy lawsuit and a hefty payout. In severe cases, defense costs alone can become almost insurmountable, and, before you know it, the primary limits of insurance have been exhausted.

While it may be assumed that only large operations have a need for excess insurance, the truth is that a massive loss can happen to businesses both big and small; moreover, a large loss can turn a small business upside down. The following claim is an example of how a large loss can be detrimental to a business.

The plaintiff was employed as a janitor for a tenant of the insured’s building. The allegation is that the janitor slipped and fell in the alley way near the trash cans, sustaining a head injury. The claim was initially handled by the primary carrier and was thought to be valued well within their $1 million limit. The file was reopened upon notification that the janitor was alleging total disability, claiming the head injury caused a stroke resulting in permanent cognitive issues. The janitor wound up in an assisted living facility and needed this level of care going forward. While there was more than one defendant in this case, the special damages exceeded $1.1 million with a probable verdict range up to $5.5 million.

Purchasing Excess and Umbrella insurance is a way to protect insureds against these world-turning losses. With minimum premiums as low as $400, the cost is a nominal price to pay for limits up to $5 million and the peace of mind that those limits afford. USLI’s Commercial Excess and Umbrella product features many advantages, including the following:

  • Risks written with any carrier rated B++ or better by A.M. Best
  • Minimum premiums as low as $400
  • No self-insured retention
  • Risks eligible for USLI primary coverage are eligible for Commercial Excess
  • Attachment point of $500,000
  • Provides follow form coverage
  • $1,000,000-$5,000,000 limits available

When there are so many opportunities for your customer’s world to be turned upside down because of large losses, we can help make things right side up!

Please contact your regional Commercial Lines underwriter for more information or a quote, or get a web quote today >>

Download marketing materials for the Excess and Umbrella product >>

As always, thank you for your support and business.

stephen-paul-authorContact Kristi Piersol
Assistant Vice President, Underwriter, Product Leader | Mid-Atlantic Commercial Lines | 888-523-5545 Ext. 2436

stephen-paul-authorContact Stephen Paul
Assistant Vice President, Assistant Team Leader | Greater Metro NY Commercial Lines | 888-523-5545 Ext. 2087

stephen-paul-authorWritten by Ginna Briggs
March 3, 2016