Why Primary Limits Just Aren’t Enough

// March 13, 2017
Reading Time: 3 minutes


Logo-DevonParkSpecialty-IconBusinesses are at a high risk in our litigious society; many exposures could cause claims that would be in excess of primary policy limits, and loss payments and defense costs are rising year after year.

Do your customers have adequate layers of professional coverage to protect their businesses and nonprofit organizations?

Clients typically need to satisfy mandatory insurance requirements, outlined in contracts with vendors and consultants. Businesses use contract insurance to protect their interests. Miscellaneous professionals and technology consultants may be required by contract to carry minimum limits for errors and omissions and cyber liability insurance. Excess Professional Liability policies, which offer additional limits over a primary policy, provide a way to meet these contract requirements.

Cyber liability continues to be a huge concern as media outlets blast headlines on cyber assaults and distributed denial of service (DDoS) attacks. As businesses and technology usage grows, so do the risks associated with having a breach or cyber-attack. Notification costs, credit monitoring, forensic investigation of the breach and Payment Card Industry (PCI) fines and penalties could easily deplete primary policy limits.

Most businesses and nonprofit organizations rely on their websites to generate revenue. If a company website is rendered inoperable for an undetermined amount of time, losses could very well be in excess of underlying cyber policy limits. The uncertainty surrounding cyber-attacks outlines the dire need for excess coverage.

It is also imperative to consider excess coverage over management lines, such as directors and officers liability, as these claims tend to have a high severity and complexity. Claims can be litigated over lengthy periods of time, which results in hefty lawyer fees and expense costs associated with the process. Moreover, the judgment awarded by the court may include pre and post-judgment interest, as well as punitive damages that can easily pierce policy limits.

Devon Park Specialty’s Excess Professional Liability product offers a solution for your professional excess coverage needs. With limits up to $5,000,000, Devon Park Specialty can consider excess coverage for a broad range of classes, from the ground up. For errors and omissions, media or cyber accounts, this product is available to companies with revenues up to $150 million. For directors and officers, employment practices or fiduciary liability policies, we can consider private and nonprofit organizations with up to 1,500 employees.

Devon Park Specialty’s Excess Professional Liability product has many advantages:

  • Limits up to $5,000,000 are available
  • Follow-form excess
  • Ability to write first excess or within a tower
  • Limits can attach over sub-limits
  • A.M. Best rated A++
  • World class legal services and breach vendors

Be sure to offer your customers the coverage they need. It’s time to layer up!

Please contact your Specialty Lines underwriter for more information or a quote.

Button_Download_MaterialsAs always, thank you for your support and business.

Stephen_EasleyContact Stephen Easley
Second Vice President, Team Leader | 844-438-6775 Ext. 2536
Erik-TifftContact Erik Tifft
Assistant Vice President, Team Leader | 844-438-6775 Ext. 2354
Written by Samantha Hildebrand
March 16, 2017