Case Study
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Problem
One of the outcomes of the 9/11 tragedy is that many Group Life Insurers are more alert to the possibility of multiple person deaths from one event. To limit their exposures, they now impose event limits on group life policies restricting the maximum amount recoverable from one event. For companies with more than 250 employees at one location the event limit is likely to be well below the total sum of all the employees' death-in-service benefits. This would leave the company/pension fund exposed to substantial uninsured loss.
Contracts of employment generally provide a death in service payout of two to four times salary as well as a spouses'/dependents' pension. The spouses'/dependents' pension could be as high as sixteen times salary when an individual's personal circumstances are taken into account. For example:
- £20m wage-roll at a single location
- Immediate £80m death-in-service exposure
- Dependants' liability say £20m
- Total potential liability £100m
- Pension scheme event limit of £35m
- Uninsured death-in-service exposure £45m
Solution
Jardine Lloyd Thompson Limited can help you fill this insurance gap. We have negotiated a facility that provides up to £150m of excess insurance. If you need a higher amount we can arrange substantial additional insurance cover.
Coverage
Protects against a wide range of perils, including terrorism. Furthermore the insurance provides coverage for nuclear, chemical and biological terrorism. The only exclusion is war. Insurance can be bought at named premises only or anywhere on a 24-hour basis.
Premium
The premium for this cover is based on a number of factors, such as the event limit, sum insured, total maximum sum insured per person and location.
