Catastrophic lawsuits and legal expenses can threaten the future of your business or even close it. In many cases your primary liability insurance, such as general liability, auto liability or worker’s compensation, do not provide sufficient limits of insurance to fully protect your business from large lawsuits. That’s where a commercial liability umbrella or excess liability policy from Morris & Reynolds Insurance comes in, for those rainy days when it really pours.
EXCESS & UMBRELLA LIABILITY EXTENDS YOUR PRIMARY LIABILITY COVERAGE
Lawsuits, legal costs, court awards and out-of-court settlements can reach staggering sums, far exceeding the limits of your current general liability policy. An umbrella or excess liability policy is designed to provide your business with protection against catastrophic losses from lawsuits. It generally is written over (above) various primary liability policies, such as the business auto policy (BAP), commercial general liability (CGL) policy, watercraft and aircraft liability policies, and employers liability coverage as well as professional liability, pollution and many other types, nearly any, primary liability protection.
WHY PURCHASE EXCESS OR UMBRELLA LIABILITY INSURANCE FOR YOUR BUSINESS
Businesses most often purchase an umbrella or excess liability policy for one or more of the following reasons:
To protect the value of their business and its future.
Because they are required to carry a certain limit, say for a contract they were awarded that requires a higher limit.
For your peace of mind.
HOW EXCESS OR UMBRELLA LIABILITY WORKS
Say you carry a primary General Liability policy with a limit of $ 1,000,000.00 Per Occurrence and a $ 2,000,000.00 Aggregate Limit of Liability.
If you purchase a $ 5,000,000.00 Umbrella or Excess Liability policy to protect you ‘above’ your primary coverage you would have $ 6,000,000.00 Per Occurrence (your $ 1,000,000 primary followed by your $ 5,000,000 excess or umbrella) and $ 7,000,000.00 Aggregate (your $ 2,000,000.00 primary limit plus your $ 5,000,000 excess or umbrella) to protect you from a given lawsuit.
Here’s a basic overview of how this example might look;
|COVERAGE||PER OCCURRENCE||POLICY AGGREGATE|
|Primary Commercial General Liability||$ 1,000,000.00||$ 2,000,000.00|
|Excess or Umbrella Liability||$ 5,000,000.00||$ 5,000,000.00|
|TOTAL LIMIT OF LIABILITY||$ 6,000,000.00||$ 7,000,000.00|
HIGH LIMITS & LOW COSTS
Umbrella and excess liability policies are sold in increments of $ 1,000,000.00 and are much less costly than primary insurance since their coverage follows your primary protection. Depending on your needs, businesses commonly carry umbrella or excess liability coverage with limits of $ 1,000,000, $ 2,000,000, $ 5,000,000, $ 10,000,000 and even higher. The agents and underwriters at Morris & Reynolds can help arrange any limit of umbrella or excess insurance you might need, from $ 1,000,000.00 to $ 100,000,000.00 or more, all from the worlds’ finest insurers.
EXCESS VERSUS UMBRELLA LIABILITY
A business can typically extend its primary limits of liability coverage in one of two ways; purchase an excess liability policy or purchasing an umbrella liability policy. An Excess Liability policy typically extends the primary coverage, following the primary terms and conditions. An Umbrella Liability policy also follows the primary insurance but is typically broader than the primary protection. Just as when you use an umbrella during a rain shower and it extends out beyond you so does a typical umbrella, extending beyond your primary insurance’s terms and conditions in important areas.
Say, for example, you carry a business auto policy on your fleet here in the United States but while traveling to a business conference in Mexico suffer an accident. While your primary auto coverage here in America does not extend to Mexico if you carry an umbrella your umbrella offers world-wide protection and in this example would ‘drop down’ and become your primary insurance after the Self Insured Retention.
An umbrella or excess liability policy can serve several purposes including;
Provides excess, higher, limits ‘above’ the limits of underlying, primary, liability policies are exhausted by the payment of claims;
In certain cases an umbrella (but not an excess policy) can ‘drop down” and pick up where the underlying, primary, policy leaves off when the aggregate limit of the underlying policy is exhausted by the payment of claims;
In certain cases an umbrella liability policy (but not an excess policy) can provide protection against some claims that are not covered by the underlying policies. In these cases you pay a small ‘deductible’, called a self-insured retention (SIR), and then the umbrella insurer begins to defend you and, if needed, pay damages for negligence your business is found liable for from the loss.
No matter your industry or need, the professional agents and underwriters at Morris & Reynolds can create a customized solution for your catastrophic liability protection needs. We access and represent the worlds’ leading excess and umbrella insurers and always offer the coverage that you desire at the competitive costs you deserve.
A UNIQUE APPROACH TO BUSINESS INSURANCE
Business insurance is our business. When it comes to your coverage and the risks your enterprise and people face we treat your business as if it were our very own. At Morris & Reynolds we offer a unique, hands on, passionate relationship with our clients that in most cases last decades because of the reliable, results oriented, solutions we provide from year to year. Some of the benefits of our business insurance work for our clients include;
SUPERIOR MARKET KNOWLEDGE, RELATIONSHIPS & INSURER ACCESS
Morris & Reynolds represents and has access to the entire market of leading insurers for all of the risks our business insurance client face. Many of our relationships with major insurers span decades and in some cases date to the founding of our firm in the 1950’s. We also take pride in representing cutting edge and emerging insurers from around the globe to structure the coverage, limits and costs you need and deserve.
ALL FORMS OF INSURANCE, EMPLOYEE BENEFITS & RISK RELATED SERVICES
Our dedicated professional people are your consultants, problem solvers and partners. We help assess your needs, evaluate solutions and suggest alternatives for your organization. We build a high level of familiarity with your company so we can offer the insights that satisfy your changing risk-financing needs. Some of our products and services include:
Alternative Risk Financing, including Captives and Risk-Sharing Pools
Claims Management & Administration
General Property and Casualty Insurance
Group Health Insurance & Employee Benefit’s
Malpractice and Errors & Omissions
Pension & Retirement Plans
Professional Liability including Directors and Officers and Employment Practices
Risk Management & Loss Control Services
Workers Compensation and Employers Liability
AGGRESSIVE, TRANSPARENT, NEGOTIATIONS
Your protection, goals and bottom line are our sole focus. The coverage and costs that we negotiate, in fact all we do, is focused on your protection needs, goals and bottom line. We are known as aggressive negotiators who have our clients’ best interest at heart. Always.
We also enjoy serving our clients in the most transparent manner possible and are happy to discuss and disclose our compensation and answer your questions about that important topic with you. Morris & Reynolds is a truly independent insurance agency and has been since 1950. Our focus is never on stockholders, stock prices or an insurance company preference but our clients’ goals, dreams and desires. Always.
PEACE OF MIND
Insurance is more than a legal contract, it’s your peace of mind. At Morris & Reynolds Insurance we take your protection, and peace of mind, to heart in all we do from the coverage we structure, the insurers we suggest and the day to day service and care we provide to our clients. When you need us most, we will always be there.
VISION & INNOVATION
At Morris & Reynolds Insurance our clients receive the best of both worlds. We are well known for our ‘old fashioned, reliable and responsive service that dates to the founding of our agency in 1950. We are also known for employing cutting edge technology and offering the latest in coverage innovations and ideas to serve our clients’ ever evolving needs. Services such as The Protection Portal, Morris & Reynolds MyWave and the Morris & Reynolds Risk Management & Loss Prevention Services are just a few examples of our forward thinking approach to service.
AWARD WINNING, EDUCATED, PROFESSIONAL PEOPLE
Our Client Service Underwriters, Client Advocates and Professional Agents are deeply committed to their profession and career-long learning. Our award winning TEAM of professional people, the finest people in insurance, is unique to Morris & Reynolds Insurance. In order to offer our client’s the very finest results possible we constantly seek improvement by way of training, performance measurement and process reviews.
Our corporate office is an approved and certified testing site for the prestigious Insurance Institute of America and their curriculum is part of our ongoing TEAM educational efforts. Morris & Reynolds Insurance is proud of the awards that TEAM members have received from a variety of industry associations and insurers, including the Florida Agent of the Year, The National Agent of the Year and The Customer Service Representative of the Year Honors to name a few.
A UNIQUE APPROACH TO RISK REDUCTION
Every day we work to provide you with the very best coverage, care and solutions available. Our extensive range of professional services, designed to manage your risk and make you and your business more efficient, include:
ANNUAL UPDATING & RISK REVIEW
Businesses change and evolve. Because of this, Morris & Reynolds conducts annual audits of your coverage and the exposures, risks and facts that your insurance is based upon. Working many months in advance of your renewal, we ensure that the coverage and exposures are current so that your renewal will progress as your business does.
Coverage such as workers compensation and general liability are based on estimated exposures that are then audited by the insurer after the policy year ends. Our team of experts is available to assist in the preparation of your audit or even conduct the audit with the insurer for you, to save you time and money.
We place an extreme emphasis on your claims. Morris & Reynolds employs licensed, professional insurance adjusters that manage your claims all year long with state of the art automation. Your assigned Claims Manager at Morris & Reynolds is your expert advocate, dedicated to resolving claims quickly and fairly. Whether it is a simple auto claim, a major fire, a devastating hurricane or a complex lawsuit, we will be right next to you doing our best to support you during what we know can be a traumatic time.
ROBUST, ANNUAL, MARKET RESEARCH & AGGRESSIVE NEGOTIATIONS
Morris & Reynolds represents hundreds of the world’s leading insurers, brokers, wholesalers, reinsurers and alternative risk related firms in the industry. As your agent, we aggressively seek solutions from all leading insurers in the marketplace and negotiate one insurer against another to arrange the best possible coverage and cost for you.
RISK MANAGEMENT & LOSS CONTROL
Protecting your business and bottom line through risk management and loss control can have a dramatic impact in lowering your insurance costs and risk related expenses. The risks that you face can come from a variety of sources including project failures, legal liabilities, natural disasters and even deliberate attacks. We proudly offer you best in class risk management and loss control that can help identify, control and manage the risks you face.
STEWARDSHIP & DEEP ANALYSIS
Success in reducing your risk and its associated costs are often found deep in the details of your coverage, claims and business. For this reason, Morris & Reynolds provides a range of detailed stewardship reports and analysis related to your coverage, options, performance, claims and other risk related metrics that are useful in constructing your Protection Plan and managing your risks.
MORRIS & REYNOLDS MYWAVE
Morris & Reynolds’ MyWave is a truly dynamic internet-based portal that delivers robust, time saving tools and information related to employee benefits, human resources and risk management. Simply log on to your customized homepage to find valuable detailed information as well as interactive postings.