Commercial Umbrella and
Excess Liability Coverage
October 2011
Coverage Checklist
Umbrella and excess liability policies share a common goal of providing higher limits for an insured than are provided in the primary liability program. Umbrella policies also provide coverage for gaps that may be found in the primary liability policies. Excess liability policies, however, only provide higher limits and are no broader than the underlying primary policies over which they apply. Some insurance carriers offer dual umbrella/excess forms, which provide excess liability coverage on a follow form basis over underlying policies that are scheduled, and broader umbrella coverage for liability exposures that are neither scheduled nor excluded.
There are no standard umbrella/excess forms, so it is important to review the coverage being purchased carefully in an effort to obtain the broadest coverage that is possible. The following coverage chart outlines areas that should be given special attention.
Umbrella and Excess Liability Checklist
General Information
Named Insured:
D/B/A:
Address:
City, State:
Phone:
Named Insured is a(n): _____Individual _____Partnership _____Corporation
____Limited Liability Corp. _____Joint Venture _____Other
General business operations:
States/territories in which insured has operations:
States/territories in which insured may begin operations within next twelve months:
Loss control contact name/phone:
Coverages
____ 1. Umbrella form?
____ 2. Excess liability form?
____ 3. Umbrella and excess liability form?
____ 4. Claims-made form?
____ 5. Occurrence form?
____ 6. Limit of liability per occurrence?
____ 7. Aggregate limit of liability?
____ 8. Quote aggregate limit on per location or per project basis?
____ 9. Have additional limits of liability been quoted?
____ 10. Is there an SIR for claims not covered by the underlying policies?
____ 11. What is the SIR amount?
____ 12. First dollar defense coverage?
____ 13. Is the schedule of underlying insurance accurate and are all policies listed on it in effect?
____ 14. Ninety day notice of cancellation or nonrenewal?
____ 15. Flat premium?
____ 16. Auditable premium?
____ 17. Pay-on-behalf of form?
____ 18. Indemnification/reimbursement-type form?
____ 19. Review definition of personal injury—does it include mental anguish?
____ 20. Defense in addition to limit of liability?
____ 21. Defense included within limit of liability?
____ 22. What is provision for policy dropping down to replace insolvent underlying insurance?
____ 23. Real property care, custody, control exclusion?
____ 24. Personal property care, custody, control exclusion?
____ 25. Review watercraft coverage/exclusion provisions.
____ 26. Review aircraft/aircraft parts coverage/exclusion provisions.
____ 27. Does coverage apply over UM/UIM underlying coverage?
____ 28. Are all layers written on concurrent forms?
____ 29. Is coverage concurrent with primary policy forms?
____ 30. How are unnamed joint ventures and partnerships addressed?
____ 31. Broad form named insured endorsement?
____ 32. Delete any requirement to reinstate underlying insurance that has been diminished or exhausted by claim payment(s)?
____ 33. Are foreign liability policies scheduled on underlying?
____ 34. What is policy territory?
____ 35. If layered program, is each layer at least as broad as the underlying program?
____ 36. Verify no exclusion on employers liability for occupational disease.
____ 37. Are there any professional liability exclusions?
____ 38. How are punitive damages treated?
____ 39. Quote named peril or sudden/accidental pollution as an option?
____ 40. Are all umbrella/excess liability policies as broad as or broader than policies listed on the schedule of underlying insurance?
____ 41. Are all underlying excess coverages required by each layer of excess insurance actually in force as required?