Do you have a large commercial client with high stock values?
Do you have limited capacity in your local insurance markets?
The answer is an Excess Stock insurance policy which incorporates a method of structuring the risk so that each policy provides a ‘layer’ of coverage.In essence, a primary layer of coverage may be purchased with the Client’s Property or Stock Throughput policy. The Excess Stock insurance then provides a layer of coverage above the primary layer and does not respond to losses until the primary layer has exhausted its applicable limit. In practice, the primary layer has a first loss limit designed to cover most losses and the Excess Stock insurance comes into play for catastrophic losses.
The Excess Stock insurance is written under exactly the same terms and conditions as the primary layer although, if requested, it can also be restricted to any ‘named perils’.
Where higher limits are required, this layering process can continue to provide limits in the hundreds of millions of capacity.
For example:
A Client operates a warehouse where stock/inventory limits may reach a maximum of € 25.000.000,00
A stock insurance limit of € 5.000.000,00 is included in the Client’s property or Stock Throughput policy and an Excess Stock insurance policy is placed for € 20.000.000,00 excess of the primary policy’s € 5.000.000,00
Advantages of layering in this way include the following:
London Underwriters have consistently rated Excess Stock risks competitively
There are no restrictions for Earthquake, Flood and Windstorm
The additional risk is spread among various Insurers
For more information please visit our web site: www.greenwoods.org