An innovative way to solve a pressing excess liability challenge
With lead umbrella capacity dramatically reduced, rising attachment points and significant rate increases, many companies are struggling to fully place casualty programs at a price they perceive to be appropriate given their loss history. Even companies that expect favorable loss experience and are willing to retain risk between their retention and lead umbrella attachment point still require evidence of insurance for the retained layer of risk and/or want to cap their exposure to greater than anticipated loss frequency.
The BufferFlexSM product at Everest Insurance® addresses these issues. A multi-year, cancellable policy that sits above the retention and below the lead umbrella attachment point, BufferFlexSM enables companies to share the risk and pay premium commensurate with actual loss experience.
BufferFlexSM is highly customizable with each program designed to meet a company’s specific needs including its risk appetite, desired financing structure, limits, and statutory/business requirements. Target companies are those who either cannot obtain a conventional program due to their loss experience or coverage class as well as those companies who are seeking to share in the upside from their favorable loss experience.
Minimum Annual Revenues: $100 million
Multi-year (typically 3 years) with option to cancel
Per occurrence, annual and term aggregate limits
Insured retains/ funds at least the first loss occurrence
Risk sharing options:
Upfront premium with return premiums in the event of favorable loss experience;
Reduced upfront premium with additional premiums based on actual loss experience;
Reinsurance of, or cession to, a captive;
Aggregate deductible covering the expected loss(es) to the layer
Collateral may be required to secure Insured's obligations
Defense costs within the limit (unless prohibited)
Access to Everest's claims expertise
Available coverages include Auto Liability, General Liability, Products Liability, Employers Liability
Per occurrence limits up to $10 million
Aggregate limits are a function of funding levels and expected losses
Available on a non-admitted basis. Coverage territory is the United States, its territories and possessions, Canada, and Puerto Rico