Most brokers are aware that Commercial Umbrella or Excess Insurance policies require the maintenance of an underlying schedule of primary insurance at mandated limits and coverage.  Compliance with this coverage requirement for many brokers and agents consists simply of verifying the adequacy of the schedule underlying limits.  There are some other common oversights which can dramatically affect a claim.   Below are 5 of the most common oversignts that we see. 

(Forms and requirements differ from admitted and non-admitted programs.) 

5 Common mistakes Agents make that could impact coverage on a claim:

• Listing an incorrect address or failing to add a new location. 
• Making changes to your underlying carrier and not notifying your Umbrella carrier.  Changes in coverage forms are common when underlying carriers change.
• Coverages being left off the umbrella policy.   D&O or Professional.
• Failing to report a claim within a timely manner.  What are the reporting provisions of the umbrella carrier?
• Issuing coverage with sub limits.  Do the limits meet the Umbrella underlying schedule requirements? 

There are consequences when the insured fails to comply with the “Maintenance of Underlying Coverages” provision so be sure to review your underlying coverages carefully.  If you have any questions regarding underlying policy limits, please contact one of our highly knowledgeable Underwriters and we would be more than happy to help you out with anything you may need!

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