Recently we encountered an instance where one of our client’s experienced a very serious “near miss” vehicle accident when an object fell from the truck he was driving and struck a passing motorcyclist. Fortunately, the motorcyclist escaped serious injury, but circumstances could have easily gone the other way.
This example reinforced for me the reason we recommend all of our clients consider the addition of an excess liability insurance policy (often referred to as an umbrella policy) when reviewing their business insurance needs.
To put into perspective just how costly a catastrophic claim can be, consider these recent settlements:
- $12,300,000 for a rear-end collision
- $3,900,000 for cargo dropping off a trailer and causing a collision
- $3,000,000 for a jackknife
- $6,000,000 for a trailer crossing into another lane
- $3,700,000 for a run under
- $4,700,000 for an intersection accident
Excess liability policies add additional limits of coverage in $1,000,000 increments to sit above existing primary auto liability limits. You select the additional limit you feel is appropriate in order to protect your business from a large catastrophic accident. Premiums are very economical and vary depending on a number of underwriting criteria. However, in general it is much less expensive than the $1,000,000 limit of your truckers’ primary auto liability policy. For example, the first $1,000,000 limit of your truckers’ primary auto liability policy is easily over $3,000 per truck. Premiums for an the first additional $1,000,000 limit of excess liability coverage often average $1,000 per truck, with the premium for each subsequent million dollars of excess liability coverage declining by up to 50%.
Don’t wait until you have a “near miss” of your own. If excess liability is coverage you are interested in call us today at (800) 596-TRUCK (8782) and let us help you evaluate the costs and benefits. All of us at the Navigator Truck Insurance Agency work hard at being accessible, helpful and result oriented.