The Claims-Made Gap? Facts vs. Myth

When most insurance agents hear the RWC Insurance Advantage offers Claims-made general liability coverage, they warn their general contractor customers to stay away from it. They say you’ll be trapped by the “gap” in coverage that will open up the moment you try to leave. What happens upon termination of coverage is one of the biggest arguments against Claims-made. The way some agents talk, you’d think Claims-made is like the old children’s poem “The Spider and the Fly;” “Will you walk into my parlor?’ said the Spider to the Fly.”  We know the fly enters - never to leave.  These agents argue there would be no coverage for any claim made after policy termination even if the loss occurred during the time the policy was in force.  And they would be right – with any other company’s Claims-made policy. Those companies will offer you a Supplemental Extended Reporting Period, or SERP, at the end of your policy term when you try to move your coverage to another company. They will charge you up to 200% of your expiring policy’s premium for the SERP.  Who can afford that and the new policy premium as well?

This WILL NOT HAPPEN with the RWC Insurance Advantage’s unique Claims-made policy. With our policy, the SERP is offered UP FRONT, and we GUARANTEE that it will be attached, as long as your policy is not canceled for non-payment of premium or fraud. Rather than charge a large lump sum at the end for the SERP, we add a reasonable 25% charge to each policy term, and you have 6 years to pay it off.  After that, the SERP is fully funded and we GUARANTEE it’s attachment at policy termination - no matter what. Even better, if you decide to leave before the 6 years are up  you’ll still get the SERP - and NO COVERAGE GAP.*  

The SERP is unlimited in duration and can never be canceled for any reason. It automatically restores limits that may have been used up by prior claims.** Even if you decide to move your general liability coverage somewhere else after just one year with the RWC Insurance Advantage, you’ll still get the SERP – guaranteed.

So, walk into our parlor anytime without fear of being trapped.   

(*Subject to short rate premium penalty if you cancel your current policy before its expiration date.)

(** Does not apply to Personal and Advertising Injury limit, Each Occurrence limit or Damage to Premises Rented to You limit.)

Comments are closed.