Navigating the Umbrella and Excess Market in 2022
Over the past few years, insureds have seen unpredictability arise in the umbrella and excess market. Carriers are reducing the limits they can offer while raising rates by an average of 15-25%, according to Insurance Business Magazine. Contributing factors to carriers’ decisions include loss leading perils and fear of the unknown.
Society has become increasingly litigious, resulting in a dramatic rise in casualty claims that are coupled with extraordinarily large payouts for typical bodily injury claims. Nuclear verdicts, incited by strong anti-corporate sentiment and third-party litigation funding, have resulted in multimillion dollar jury awards above policy limits. These factors, along with the increased costs to settle claims due to social inflation, have tightened the umbrella and excess market, making it difficult for businesses to secure adequate coverage.
Due to social inflation, increased jury awards and contractual obligations, umbrella policies are becoming a must-have rather than an optional coverage. At Devon Park Specialty, we can offer up to $5 million in limits anywhere in a $20 million excess tower (in most cases) for over 300 eligible classes.
- Ability to write over carriers rated B++ or better
- Minimal attachment points of $1 million for general liability and auto liability and $500,000 for employers liability
- We do not require a deductible or self-insured retention
- All policyholders have access to our Business Resource Center, which offers value-added services such as legal services and discounted background checks
In the changing legal landscape, it is imperative businesses are adequately insured to protect their assets. Contact your Commercial Lines underwriter for more details about our Excess/Umbrella and Excess Layering products.
As always, thank you for your support and business.
Contact Michelle Ralston
Second Vice President, Team Leader | 888-523-5545, ext. 2015
Written by Bob Kane