Umbrella/Excess General Liability - Limit

Specifications:

Template Outline:

#1 - What information should be provided in the opening section of the waiver?

The opening section of the waiver should clearly state the requestor’s identity, and the purpose/type of the exception is requested. Provided below are a few examples that can be used for further assistance.

<Organization/Borrower name> is currently requesting the exception of certain CGL/Umbrella or Excess coverage requirements. These requirements include <requirement details>.

<Agent name> is requesting the waiver of certain CGL/Umbrella or Excess coverage requirements on behalf of <Organization/Borrower name>. These requirements include <requirement details>.

#2 - How to provide details about the current coverage?

When writing the waiver, it’s important for the borrower to provide details about the current coverage in place. Such details may include the provider name and the name, type, structure, and limitation of the current coverage. The example provided below can be used for further assistance if required.

<Organization/Borrower name> currently has coverage from <provider name>. The <Organization/Borrower name> currently owns <number of properties>, each of which has a <Insurance coverage 1> with a per occurrence limit of <dollar amount>, a per location aggregate of <dollar amount>, and policy aggregate of <dollar amount>. In addition, the <Organization/Borrower> also has <Insurance coverage 2> of <dollar amount>. Both <Insurance coverage 1> and <Insurance coverage 2> are structured as <policy structure details>.

#3 - How to demonstrate compliance efforts when applying for a waiver?

The borrower should also demonstrate compliance efforts when applying for a waiver, as it can strengthen the likelihood of the waiver being approved. When demonstrating compliance efforts, details about the available quotes in the market should be provided. In addition, the borrower should also emphasize the increase in costs that would occur if compliant coverage is obtained. Below is an example that can be used for further assistance if required.

<Organization/Borrower name> has acquired insurance quotes from <number of providers> in <location details> including <insurance provider name/details>. However, these providers are not willing to offer the required coverage due to <details for not offering coverage>.

<Organization/Borrower name> has acquired insurance quotes from <number of providers> in <location details> including <insurance provider name/details>. However, acquiring compliant coverage would lead to an additional <dollar amount> cost.

#4 - How to demonstrate the sufficiency of the current coverage?

The sufficiency of current coverage can be demonstrated by providing details about the previous loss and claims history. Providing such details can help illustrate the fact that no previous loss or claim has exceeded the coverage requirements, and the current coverage is, therefore, certain. Provided below is an example that can be used for further assistance if needed.

<Organization/Borrower name> has had a total of <number of claims> over the past <number of years>. These claims, in total, amount to <dollar amount>. Therefore, the current policy <policy name and details> is sufficient enough to cover such claims if they arise in the future.

#5 - How to demonstrate financial stability?

When applying for a waiver, the borrower should demonstrate financial stability by providing details about their or their sponsor/guarantor's net worth and liquidity. These details will help demonstrate the ability to cover claims/damages that may exceed coverage requirements. The examples provided below can be used for further assistance when writing this section.

<Name 1> has been identified as the sponsor/guarantor of the loan. As of <Date>, <Name 1> has a net worth of <dollar amount> and liquidity value of <dollar amount>. Therefore, the borrower can sustain claims/damages in excess of <dollar amount>.

#6 - How to justify the request for approval?

Prior to submitting the waiver, the borrower should justify the request for approval. It’s important to understand that this justification can be made based on various factors that include financial stability and the sufficiency of the current coverage.

Factors such as the lack of availability of compliant coverage and costs incurred to acquire such coverage can also be used. In addition, a low loss/claims history can be used to strengthen the case for exception.