Umbrella/Excess Liability
The exception is accounts with large auto
As a cover for various primary insurance policies,
distances (typically greater than a 200-mile
umbrella insurance (also called excess liability)
radius). For these accounts, expect premium
covers further costs when primary policies
increases and/or an increase in attachment
run out. While a general or auto policy might
point for auto liability coverage. Meaning, an
be for $1 million, umbrella insurance can
umbrella insurer may require a larger primary
provide another $5, $10, or $25 million on top,
auto liability limit.
saving clients from purchasing larger policies for each primary insurance layer.
fleets, especially heavy trucks that drive long
Market capacity remains abundant and we expect continued softness across all casualty
Clients commonly add umbrella insurance to
markets. Even clients seeing some increases
their bundle, so it's important to understand
in the lead umbrella can often offset those
that it can be impacted by the primary liability
increases with reductions in excess layers.
markets underneath it. For example, if you have a tough product exposure on an auto policy (perhaps a truck fleet that carries hazardous materials), cost increases there will flow up to your umbrella policy.
Overall, the casualty insurance market is still soft and ideal for buyers. The one exception to this is auto liability, and we encourage clients to note the underwriting strategies we've outlined above when heading into auto
In general, umbrella market conditions remain
renewals. Differentiating yourself from the rest
soft with a lot of capacity. This is especially true
of the pack can help mitigate rate increases
above the lead umbrella layer (usually $25
and reduce costs for the entire business.
million) with many carriers fighting for the shrinking premium dollars.
Umbrella liability market conditions remain soft, especially above the lead umbrella layer.
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