Gaps in Your Excess Casualty Program Could Cost You

Driven largely by rising litigation costs, including jury verdicts for auto liability, product liability, and medical malpractice claims, casualty insurance losses continue to climb. With a comprehensive, multilayered casualty insurance program that includes excess casualty, you may think you’re well covered — only to find some losses are excluded because your program isn’t what you think it is.

Excess casualty underwriters often offer coverage that purports to be “follow form.” That means that every layer in the insurance program has terms and conditions that match those of the layer below. Yet when a claim is tendered, the insured may discover that the policies vary significantly, raising doubts about whether the coverage will respond and whether the loss will be fully insured.

“Gaps in Your Excess Casualty Program Could Cost You” discusses three common deficiencies in excess casualty insurance programs and explains how new enhanced policy forms can eliminate gaps as well as conflicting terms and conditions in excess casualty insurance coverage.