Burns & Wilcox has written more than $100 million in Commercial Excess Casualty business — a sweet spot in an otherwise uneven market.

In response to shifting marketplace demand, Markel in partnership with Burns & Wilcox, has expanded its Excess Casualty product line and strengthened its marketing outreach to insurance agents. With Markel, Burns & Wilcox can now underwrite Umbrella and Excess limits up to $10 million, instead of the previous $5 million ceiling. Additionally, through this program, the range of eligible business classes and types of risks has been significantly diversified. Finally, to secure business in this burgeoning market, the revenue threshold of qualifying insureds has been increased to $250 million.

What are the risks?

Is This Umbrella Right for Me?

While most businesses do not
generate anywhere near $250 million
in revenue, Dan McQuillen, a Senior
Underwriter at Burns & Wilcox who
specializes in Excess and Umbrella
Coverage, describes why these poli-
cies benefit small businesses as well:
“There are high-risk companies, obvi-
ously. A manufacturer of brake pads
for the automotive industry has higher
potential exposure than the ‘mom and
pop’ restaurant down the street,” he
says. “But that restaurant, unless they
buy the higher level insurance, are only
covered at $1 million per occurrence.
What if there is a slip-and-fall, food
poisoning, a fire? To protect against
asset depletion from unforeseen risk —
that’s why we issue these policies.”
“Though large firms are the obvious
candidates for this type of coverage
due to the extensive risks associated
with their businesses, excess protec-
tion resonates with commercial enter-
prises of all sizes in an increasingly
litigious society,” says Marla Donovan,
Office of Product Development, Burns
& Wilcox Corporate Headquarters.

As Tom Ryder points out, smaller firms may have a greater need for Excess and Umbrella Coverage than larger companies. For example, he says, “In the month of June there could be a slip-and-fall, and in September, another one. A small busi-

the risk of large liability claims exists for many different types of businesses. the following examples are based on actual claims as well as hypothetical but realistic claims scenarios:

Trucking Firm the insured’s employee is driving a truck and runs a red light, striking another vehicle, then ricochets off into a crowd of pedestrians waiting at a bus stop three people are killed and several sustain serious injuries injured claimants receive judgment well above the insured’s total primary/ excess auto liability limit of $3 million this underinsured loss incident places severe financial distress on the business

Roofing Contractor the roofing contractor uses an adhesive to replace a roof static electricity causes the adhesive to ignite, and a fire spreads, causing fire and water damage not only to the roof but to the interior of several tenant leased spaces insured carries $1 million in primary coverage. total damages are $2.5 million not counting business loss claims insured is liable for $1.5 million over and above the underlying primary general liability policy

Food Processing Company there is a food poisoning outbreak involving multiple claimants in addition to some deaths, some claims incur expensive medical treatment the estimated claim value is $5 million from damage awards to injured parties the insured carries $1 million primary general liability occurrence limit the uninsured excess losses bankrupt the business

ness is even less likely to be able to
absorb the cost of litigation as opposed
to a big business. I can’t say it enough:
this is a conversation every agent
should have with their insured com-
mercial clients, no matter the size.”
Ryder’s best advice for insur-
ance agents? Bring up the subject of
Umbrella or Excess Coverage each
time they talk to people about pur-
chasing a new policy or renewing an
existing one. Visit the topic on an
annual basis; review exposures with the
client and have a clear understanding
of how the business has changed from
year to year. Have sales increased?
Payroll? Locations? “The exposure to
small or large business multiplies as
does the payroll, as do the sales,” he
says. “The successful entrepreneur or
successful company has to pay atten-
tion to the coverage they’ve gotten. Is
it adequate?”
Finally, he says, ask the business
owner to do a self-inventory; how
much can I afford to lose?

for more information on excess casualty and umbrella coverage, contact tom ryder at tfryder@burns-wilcox.com or Dan mcQuillen at damcquillen@burns-wilcox.com.