The Incentives to Additional Coverage That You Might Be Forgetting

// September 7, 2017
Reading Time: 3 minutes

Commercial insurance is one of the most important decisions business owners can make to protect their investments. In order to protect against an unforeseen catastrophe, many insureds choose to obtain both primary and excess or umbrella policies to protect their investment.

However, “peace of mind” isn’t the only reason you should make certain that your insureds seek out the additional coverage. Fulfilling contractual obligations and avoiding errors and omission (E&O) claims are two other incentives.

Contractual obligations are common risk transfer techniques. In today’s litigious society, many contracts are requiring the other party to carry limits higher than the long-time accepted $1 million/$1 million limits. It is now common for real estate and other industries to require limits of at least $2 million/$2 million and all the way up to $5 million/$5 million.  An example of a contractual obligation would be a landlord requiring tenants to carry their own insurance.

Protecting yourself against future E&O claims is another significant incentive for offering your insureds commercial excess and umbrella policies. Many E&O claims arise from gaps in coverage between the underlying and excess or umbrella policy. One way to avoid this hazard would be to confirm that all of the underlying requirements for the excess and umbrella policy have been satisfied. By providing your insureds with comprehensive coverages, you also lessen the likelihood of a competitor filling a gap in your customer’s coverage.

The Devon Park Specialty Commercial Excess and Umbrella product can be used to fulfill your insureds contractual obligations and prevent E&O claims against you. With minimum premiums as low as $500, the cost for these types of polices is nominal compared to the benefits that they provide. Our product features many advantages, including the following:

  • Liability limits up to $5,000,000 on over 300 classes of business
  • Low attachment point of $500,000*
  • Underlying polices can be written with any carrier rated B++ or better by A.M. Best
  • No self-insured retentions
  • No requirement to be concurrent with primary coverage

Business owners probably spent a lot of time and money establishing their businesses, which means it’s imperative that your insureds safeguard their investment by supplementing their coverage.

Contact your Commercial Lines Underwriter for more details about our Commercial Excess and Umbrella product.


As always, thank you for your support and business!

*Only available for some eligible classes

Cheryl-RussellContact Cheryl Ryan,
Executive Vice President, Division Leader | 844-438-6775 Ext. 2582

Danielle ConnerWritten by Danielle Conner
September 7, 2017