It’s a common misconception that liability insurance alone is enough for peace of mind in all situations. Your clients may be under the impression that their liability insurance is all they need in every possible circumstance. In fact, there are likely exclusions in the policy that leave potentially devastating gaps.
For your clients, the words ‘excess liability insurance’ may not be familiar. However, this type of coverage might be precisely what they need for additional protection and peace of mind. As an insurance producer, you will already know the reasons that this type of insurance is beneficial. As a refresher to you and a reminder of why your clients may want to take advantage of this line, here are its benefits and why you should offer it to your customers.
With this information, you will have many reasons to tell your clients why they should have excess liability insurance, which you can secure through Prime Insurance Company.
What is Excess Liability Insurance?
Your clients’ understanding of their regular liability insurance is crucial. They may not know that this coverage is otherwise known as primary or underlying insurance, a name that in itself gives a hint as to why excess liability coverage is important.
Primary or underlying insurance should be seen as a starting point for your clients. They may be surprised to find out that it’s just the first step in securing themselves against liability and risk. Once you look for their exclusions and point out why those gaps are problematic, they should see the need for expanded protection.
Let your clients know that excess liability insurance is there to kick in when primary insurance is exhausted. Ensure that they understand it can provide coverage where primary insurance won’t cover an issue at all.
A client may be best suited for follow-form coverage, which adds onto what they already have, or umbrella coverage, which goes beyond existing liability insurance to expand upon risk protection. He or she may require both. In any case, the bottom line is that excess liability insurance does more than primary insurance. With that information clear in your clients’ minds, you can move onto the specific benefits of having excess liability insurance, tailored to their needs.
Insufficient Liability Coverage
Even the most comprehensive liability insurance might not be enough for some clients. This is often the case for those facing the risk of major lawsuits thanks to riskier activities or offerings, or for those with especially litigious customers, such as dog walkers, doctors, or trapeze artists.
Again, your clients may be under the mistaken impression that their existing liability insurance is enough. If you know that they are involved in higher-risk activities or exposed to litigious clients, you can explain why regular liability may not be enough, and the benefits of having excess liability insurance to cover the rest.
While we write insurance to cover risks others have turned down, we still recommend looking at a policy’s exclusions to determine whether your client could benefit from additional coverage via excess liability insurance.
Major Business Assets
Some of your clients may possess significant business assets. If these clients face a lawsuit that is successful for the claimant, they may need to sell assets to meet the award beyond what their insurance covers. For these clients, explain how their assets could be at risk. And be sure to clarify how excess liability insurance can protect those assets in the event of a costly award.
Even high wealth clients may be unaware of just how expensive a lawsuit can be. Clients with significant business assets might have some umbrella or excess coverage in place, but not enough, given the ever-rising awards coming out of litigation. Your clients with major business assets are likely to be swayed by a simple cost-benefit analysis. Demonstrate how the slightly higher expenses of excess liability insurance is worth the benefit it provides.
Gap Coverage
It’s a common misconception that general liability insurance covers every conceivable issue. As an insurance producer, you know differently, of course. Examine what their insurance covers, and, if there are gaps, take the opportunity to explain how excess liability insurance can protect them in the areas where they are exposed. Nobody wants to be underinsured, especially if their net worth is significant.
Working with Prime Insurance Company for Excess Liability Insurance
Overall, this is an insurance area that’s on the move. According to Business Insurance, umbrella and excess liability and professional liability rates increased 2.5% in the second quarter of 2019. If you are not already taking advantage of our offers for excess and surplus (E&S) lines, there is no better time than today.
We specialize in solutions for your clients who would benefit from excess and surplus lines. As we’ve shown, there are many scenarios in which this kind of insurance can make all the difference to clients who trust you to find solutions for their needs.
Because we offer E&S insurance in areas other insurers might deem too risky, we are transforming coverage for clients like yours. These clients would otherwise remain underinsured at best and uninsured at worst, neither of which we consider acceptable.
Over the years, we’ve worked hard to establish partnerships with insurance producers. We would be pleased to welcome you and your clients to the Prime Insurance Company family for your excess and surplus lines.
Contact
Call Prime Insurance Company at 800-257-5590, email us at info@primeis.com, or check out our contact page to get in touch and learn more about our E&S offerings. Use our quick and easy online form to obtain a quote. We also invite you to visit us on Facebook, LinkedIn, and Instagram for more information and regular updates.
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Authored by Rick J. Lindsey, CEO, President, and Chairman of Prime Insurance Company
Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. Prime Insurance also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are Prime Insurance can help.
