Contractual Obligations Boost Need for Higher Limits

// March 5, 2020
Reading Time: 2 minutes

In today’s society, it’s more common than ever for liability settlements to reach the million-dollar mark or higher. It’s impossible to predict jury awards; however, purchasing excess liability insurance is an inexpensive way to protect your insureds’ financial futures and established assets.

Excess liability insurance provides coverage limits that exceed the underlying liability policy. The primary purpose of excess liability insurance is to close coverage gaps and to offer an added layer of protection if the underlying insurance limits are exhausted.

Peace of mind isn’t the only reason insureds should seek out additional layers of coverage. Fulfilling contractual obligations is also a common incentive.

For example, many venues, landlords and mortgage lenders require contracted parties to carry liability limits higher than the long-accepted $1 million/$1 million limits. It is not unusual for contracts to require limits exceeding $5 million/$5 million. It is important for insureds to understand their contractual obligations and obtain adequate coverage limits to provide protection.

In many cases, insureds will need to obtain multiple layers of coverage to satisfy their contractual obligations. The Devon Park Specialty Commercial Excess Layering product is specifically designed for these situations. Our product features include liability limits up to $5 million within a tower, low minimum premiums and no self-insured retention.

Over 300 eligible classes include:

  • Artisan/General contractors
  • Bars/Restaurants
  • Dwellings
  • Fitness centers
  • Hotels/Motels
  • Janitorial
  • Lessor’s risk
  • Offices
  • Vacant land
  • Vacant buildings

Make sure your insureds are protected in the event of a catastrophe. Contact your Commercial Lines underwriter to learn more about contractual obligations and how our Commercial Excess Layering product can assist with coverage.


As always, thank you for your support and business.

Contact Cheryl Ryan
Executive Vice President, Division Leader | 844-438-6775, ext. 2582

Written by Danielle Conner
March 5, 2020