Ep.

The purpose of insurance is to provide a mechanism so you can transfer your risk off your balance sheet to your insurance company’s balance sheet. However, as your firm’s balance sheet gets bigger (or the projects you take on get bigger), you are going to need larger insurance limits. However, what if that number gets too big for your current insurance company?
In this episode, we examine the concept of excess insurance and how this solution can support your firm’s growth objectives. However, as in construction, if your excess insurance tower doesn’t sit on a solid foundation, you could find your operations financially exposed should a claim occur. Not to give away the ending, but the term “follow form” is rather important in this area of insurance.
Like all things, “the details matter” and this is especially true in insurance. So, if your firm is having to increase its insurance limits to support its growth, then take a minute to make sure your tower is built of brick and not straw.