Aggregate Losses


Some clients are seeking second-event cover in light of the significant flood and earthquake losses experienced in 2011.


“Both flood and earthquake are done on an annual aggregate basis. So when you’re blowing through or utilizing those limits from an earthquake or flood standpoint, we have seen some increase as of late based on 2011 of second-event cover.” Erik Nikodem, Lexington Insurance


Given that both earthquake and flood are generally aggregated perils on standard commercial property policies, clients are looking to either increase their limits for such perils or purchase second-event coverage to respond in the event of an aggregate exhaustion.


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