Aon Risk Solutions, the global risk management business of Aon plc, has announced enhancements to Bermuda Shorts, an excess liability follow form policy that was launched by Aon Bermuda in 2008 and that now is being used by many brokers and carriers in the Bermuda market.
Aon said that its newly enhanced form incorporated several important coverage enhancements designed to respond to industry questions and client demands raised in recent years. Aon said that, in addition to express coverage for punitive damages, these enhancements included:
• Duty to defend coverage provides insureds with a defense to claims made under a policy. Aon said that it added this as a result of requests for this coverage under excess liability occurrence programs.
• Shaving of limits/erosion of underlying. Aon said that this recognized underlying erosion by payment of covered loss by the carrier or by the insured.
• Business continuity. Aon said that this provided for an automatic 30 day policy extension in the event a natural disaster prevented 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 said that it will soon launch a London Shorts form that will incorporate many of the benefits contained within the Bermuda Shorts form.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].