Aon Risk Solutions, the global risk management business of Aon plc , announced major enhancements to Bermuda Shorts, an excess liability follow form policy that answers the demand for greater contract certainty and consistency of coverage.
The original Bermuda Shorts form was launched by Aon Bermuda in 2008, and is now being utilized by many brokers and carriers in the Bermuda market. This newly enhanced form incorporates several important coverage enhancements designed to respond to industry questions and client demands raised in recent years. In addition to express coverage for punitive damages, these enhancements include:
• Duty to Defend coverage provides insureds with a defense to claims made under a policy. This was added as a result of a large number of our clients requesting this coverage under their Excess Liability Occurrence programs.
• Shaving of Limits/Erosion of Underlying recognizes underlying erosion by payment of covered loss by carrier or by the insured.
• Business Continuity provides for an automatic 30-day policy extension in the event a natural disaster prevents communication among insureds, their brokers and/or carriers at the time of policy expiration.
“Bermuda Shorts is a testament to our unmatched commitment to developing and providing comprehensive solutions that better protect our clients and empower them to manage risk more efficiently and effectively,” said Anthony DeFelice, managing director of Aon Risk Solutions’ U.S. Casualty Major Accounts Practice. “The enhanced form will improve coverage for our insureds, remove cumbersome steps from the process of securing coverage and deliver the contract certainty needed during the claims process. We are proud of our Bermuda colleagues and their continued commitment to thought leadership.”
Available to industry classes that are written on an occurrence and/or claims made basis, the enhanced version of Bermuda Shorts has currently been accepted by XL Insurance (Bermuda) Ltd., Endurance Specialty Insurance Ltd., Allied World Assurance Company, Ltd. and Aspen Bermuda Limited.
“Our original Bermuda Shorts form was a groundbreaking achievement and furthered our position as thought leaders in the marketplace,” said Karen Lawson, leader of Aon Risk Solutions’ Umbrella/Excess Liability Practice. “We are striving for similar full market acceptance for this new version of Bermuda Shorts as it provides coverage enhancements for insureds while continuing to provide a single follow form policy, delivering the consistency and coverage clarity needed in an excess/umbrella program.”
Aon will soon launch a London Shorts form which will incorporate many of the benefits contained within the Bermuda Shorts form.
