| KANE Insurance Brokerage Services, LLC |
Excess / Umbrella Liability
 |
| |
 |
| |
 |
| |
 |
Umbrella Liability Coverage vs. Excess Liability Coverage
Umbrella Liability insurance provides Excess (XS) Liability coverage over several of the
Insured's primary liability policies. Most Umbrella Liability policies provide coverage that is
broader than the Insured's primary policies. An XS policy may be what is called a following
form policy, which means it is subject to the same terms as the underlying policies; it may
be a self-contained policy, which means it is subject to its own terms only; or it may be a
combination of these two types of XS policies. Umbrella policies have three functions: (1)
To provide additional limits above the each occurrence limit of the Insured's primary
policies; (2) To take the place of primary insurance when primary aggregate limits are
reduced or exhausted; and (3) To provide broader coverage for some claims that would not
be covered by the Insured's primary insurance policies, which would be subject to the
policy retention. Most Umbrella Liability policies contain one comprehensive insuring
agreement. The agreement usually states it will pay the ultimate net loss, which is the total
amount in excess of the primary limit for which the insured becomes legally obligated to
pay for damages of bodily injury, property damage, personal injury, and advertising injury.
Limits of Insurance -
All Umbrella Liability policies contain an each occurrence limit of insurance. Some
Umbrella Liability policies may have a separate limit that applies to all personal and
advertising injury for one person or for the organization. Also, some policies are written
with aggregate limits for only one type of loss. Other policies may have one or more
aggregates for all losses. Umbrella policies can be written with several different variations
of the aggregate limits. There are no standard Umbrella policies.
Pay on Behalf -
This is an insuring agreement used in some Umbrella policies. The agreement promises
to make direct payment on behalf of the insured for those sums of money the insured
becomes legally obligated to pay because of liability imposed upon the insured by law, or
assumed under contract.
Indemnity -
This is the insuring agreement clause found in most Umbrella policies as opposed to the
pay on behalf agreement. When the indemnity clause is used, the insurer will indemnify or
reimburse the insured for those sums of money the insured becomes obligated to pay by
reason of liability imposed upon the insured by law, or assumed under contract.
Self Insured Retention (SIR) -
The SIR is the amount of the loss an insured must pay before the Umbrella policy would
be required to respond. The SIR would only apply when a loss is excluded from coverage
under the primary policy, but not excluded under the Umbrella policy.
Required Underlying Limits -
Required Underlying Limits is a requirement of the insurer. It requires the insured to have
certain types policies in force as underlying layers to the Umbrella policy.
Call 631-259-6157 with questions or send a completed copy of the following applications
to kane_michaelk@kibservices.com or by fax 631-204-6630 to begin marketing a proper
and cost efficient Umbrella / Excess program for your business:
Umbrella Liability insurance provides Excess (XS) Liability coverage over several of the
Insured's primary liability policies. Most Umbrella Liability policies provide coverage that is
broader than the Insured's primary policies. An XS policy may be what is called a following
form policy, which means it is subject to the same terms as the underlying policies; it may
be a self-contained policy, which means it is subject to its own terms only; or it may be a
combination of these two types of XS policies. Umbrella policies have three functions: (1)
To provide additional limits above the each occurrence limit of the Insured's primary
policies; (2) To take the place of primary insurance when primary aggregate limits are
reduced or exhausted; and (3) To provide broader coverage for some claims that would not
be covered by the Insured's primary insurance policies, which would be subject to the
policy retention. Most Umbrella Liability policies contain one comprehensive insuring
agreement. The agreement usually states it will pay the ultimate net loss, which is the total
amount in excess of the primary limit for which the insured becomes legally obligated to
pay for damages of bodily injury, property damage, personal injury, and advertising injury.
Limits of Insurance -
All Umbrella Liability policies contain an each occurrence limit of insurance. Some
Umbrella Liability policies may have a separate limit that applies to all personal and
advertising injury for one person or for the organization. Also, some policies are written
with aggregate limits for only one type of loss. Other policies may have one or more
aggregates for all losses. Umbrella policies can be written with several different variations
of the aggregate limits. There are no standard Umbrella policies.
Pay on Behalf -
This is an insuring agreement used in some Umbrella policies. The agreement promises
to make direct payment on behalf of the insured for those sums of money the insured
becomes legally obligated to pay because of liability imposed upon the insured by law, or
assumed under contract.
Indemnity -
This is the insuring agreement clause found in most Umbrella policies as opposed to the
pay on behalf agreement. When the indemnity clause is used, the insurer will indemnify or
reimburse the insured for those sums of money the insured becomes obligated to pay by
reason of liability imposed upon the insured by law, or assumed under contract.
Self Insured Retention (SIR) -
The SIR is the amount of the loss an insured must pay before the Umbrella policy would
be required to respond. The SIR would only apply when a loss is excluded from coverage
under the primary policy, but not excluded under the Umbrella policy.
Required Underlying Limits -
Required Underlying Limits is a requirement of the insurer. It requires the insured to have
certain types policies in force as underlying layers to the Umbrella policy.
Call 631-259-6157 with questions or send a completed copy of the following applications
to kane_michaelk@kibservices.com or by fax 631-204-6630 to begin marketing a proper
and cost efficient Umbrella / Excess program for your business:
Copyright Kane Insurance Brokerage Services, LLC - All Rights Reserved 2007 / PRIVACY
We are a Socially, Environmentally and Physically Conscience Company
New York, NY Westhampton Beach, NY
212-784-6199 631-259-6157
212-784-6199 631-259-6157