Aon Risk Solutions, the global risk management business of Aon plc, announced enhancements to Bermuda Shorts, which it described as “an excess liability follow form policy that answers the demand for greater contract certainty and consistency of coverage.” Aon Bermuda launched the original Bermuda Shorts form in 2008. It is now being utilized by many brokers and carriers in the Bermuda market.
Aon said the 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, other extended coverages include the following:
• 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.
“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,” said the announcement.
Source: Aon plc