Many insurance agents are familiar with the “Per Location Aggregate” coverage feature that is commonly included on primary Commercial General Liability policies. This feature expands separate liability limits for each location as opposed to all locations within the policy sharing one aggregate limit. Under a standard commercial general liability insurance policy, the policy is subject to a per-occurrence limit, typically $1 Million, and an overall annual aggregate limit of $1 Million or $2 Million. The “Per Location Aggregate” endorsement provides each listed insured location with its own aggregate limit of coverage under the policy.
Many agents however are unfamiliar with the treatment that umbrella carriers give to aggregate limits. Umbrella limits can follow form with the insured’s “underlying Insurance” or they can offer additional aggregate options.
Desirable options to consider include umbrella coverage forms that will offer a separate aggregate limit for Excess coverage, a separate aggregate limit for Umbrella coverage, a separate aggregate for Personal and Advertising Injury and a separate aggregate limit for Products and Completed Operations. That is a difference of four separate aggregates versus only two.
In a price sensitive market adding value through an understanding of your client’s umbrella policy’s treatment of aggregate limits is an often overlooked risk management tool that can make the difference in many sales situations for insurance professionals.
Needless to say New Empire Group’s Commercial Umbrella Coverage for Condominium Associations, Apartment Buildings and Commercial Real Estate offers separate aggregate limits for Excess, Umbrella, Advertising Injury and Personal Injury as well as Products/Completed Operations.