At the same time as many insurers are reducing their primary limits, businesses are demanding greater protection for larger liability claims. Consequently, there is a growing demand for Excess of Loss cover.
In this blog, Justin Godman, Casualty Underwriting Manager, identifies 5 reasons why brokers should be considering excess of loss cover for their clients:
1. Personal injury claims are getting larger
The likelihood of individual claims exceeding £10m has never been greater; with advances in medical science, longer life expectancies and increasing care costs contributing to larger claim payments. In addition, recent discount rate changes have seen the value of claims for catastrophic injury increase, especially those involving traumatic brain injury or spinal injury.
2. Changing contractual demands
Companies that carry out work for local authorities, property owners or main contractors will often be contractually required to hold £10m+ indemnity limits. Excess of Loss enables businesses to increase their cover, with either an annual policy or on a project specific basis.
3. Multiple injuries occurring from a single event
Companies with large numbers of employees or visitors within the same building face the potential of a single event causing injuries to multiple people. These can quickly accumulate to exceed traditional primary limits.
4. Third party property values
Many of the largest public liability claims are a result of fire caused by companies using heat at third-party sites. It’s essential to ensure that public liability indemnity limits can cover not only the damage to third-party property, but also any business interruption suffered by the customer.
5. Critical products exposures
It can be difficult to quantify the claims potential of a product, especially when that product is a component part. Brokers and their clients need to consider the end usage of their products, the potential for product failure to result in injury or damage and whether there are exports to North America where claim values can be much higher.
For brokers wishing to quote on the BIBA scheme, CNA Hardy has launched an improved online trading portal to provide immediate and competitive Excess of Loss solutions for Excess Public Liability &/or Excess Employers Liability, including unique benefits for BIBA members.
Excess of Loss cover available online in under 2 minutes
CNA Hardy's new and improved online solution enables brokers to obtain this valuable additional cover for their clients in under 2 minutes.
As BIBA’s excess of loss provider for over 15 years, we have significant underwriting expertise and a wide appetite with over 3,600 trades covered including unusual, high risks.
For more information and to register as a CNA Hardy broker, visit https://www.cnahardy.com/cna-online
Justin Godman
Casualty Underwriting Manager