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When Rounding Out an Account, Carry an Umbrella

February 09, 2017| By Maria Slowinski | Commercial Umbrella, General Liability | English

Region: North America

Today, February 10, is National Umbrella Day. Are your customers covered?

Successful business owners do not intentionally get inadequate insurance for their properties. But in today’s litigious climate, even the most savvy business owners often underestimate the value and protection that a Commercial Umbrella policy provides. Everyday occurrences can trigger multi-million dollar lawsuits - even from something as commonplace as an auto accident or a customer slipping and falling on the business’s premises.

Real life examples are not hard to come by:

  • Contractor Commercial Auto Accident - $7 million awarded.
  • Condo Association Deck Collapse - $4.14 million awarded across all claimants.
  • Grocery Store Slip and Fall - $1.63 million awarded.
  • Bar Served Intoxicated Patron After Closing Time - $3.85 million awarded.

Whenever the potential exists for a costly accident to exhaust the financial protection provided by a primary policy, the Umbrella becomes an essential part of a business’s insurance protection package. Yet selling Commercial Umbrella policies often takes a backseat to other core lines of business for many insurance companies. For small commercial risks, a Gen Re study found that Business Auto made up less than 20% of the total insurance premium for this segment but generated almost 50% of total losses.

How much opportunity is there for insurers? Based on our analysis, companies with the most success selling Commercial Umbrella typically see penetration at or above 30%. Yet sometimes we see commercial lines books where less than 10% of its insureds buy an umbrella.

For more on building a strategy that supports your goals for this line of business, give us a call. In the meantime, here’s an infographic we created to help our Commercial Umbrella clients educate their customers about the benefits of this product.


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