Helping partners and clients stay informed on property and casualty insurance.

Part 4: Commercial Umbrella’s

With nuclear verdicts ever increasing, gaining appropriate excess coverage is going to be more and more challenging. Companies that used to offer $10 million umbrellas often now will only offer $5 million umbrellas. Why? The $10 million umbrellas were getting paid out more often.

When you see insurance companies making moves to lower liabilities, coverage, or increase premiums, typically that means they are 1) losing money or 2) they are predicting very soon that they will be losing money on it.

Beware that some contracts will require certain umbrella limits. If you can’t achieve high enough limits, you might risk losing out on business. Be prepared to pay more for excess insurance.

Again, to obtain appropriate umbrella limits, implementing effective risk management solutions is key.

Credit Score.

The easiest way to lower your insurance premiums is to have a rock solid credit score. Mid to high 700’s is ideal.

All insurance companies at this point use your credit score to predict future losses. The logic being, the higher score you have, the more responsible you are and less likely to have a loss.

I have seen even a 25 point improvement in credit score can lower premiums by some 20%.

I have been exploring partnership with companies to mutually grow each other businesses. Let me know if you want to talk!