Wait a minute. Did your eyes deceive you? An insurance company claiming to save you money on your insurance? How unique! This is either a clever twist on a very old theme, or the author is running out of ideas.
The RWC Insurance Advantage offers a range of insurance products, but our bread & butter is general liability. In most states we offer this coverage two ways: occurrence or claims-made. What’s the difference? Most businesses are insured with an occurrence form. Coverage is triggered when the claim occurs during the time any policy is in effect or afterward. With a claims-made policy the claim can only be reported, or made, while the current policy is in effect or not more than 60 days afterward unless…
(We pause here for a brief intermission while most insurance agents proceed to tell you that claims-made policies are evil. They will leave you without coverage when a claim you knew nothing about is finally reported long after it happened if you ever dare to cancel your claims-made policy.)
We now return to our regularly scheduled blog.
…unless you purchase the RWC Insurance Advantage’s unique UP-FRONT “TAIL.” (Hang in there. We’re getting closer to the part where we can save you money.) Better yet, our up-front tail coverage is unlimited. That means if a claim happened while your policy was in effect, but doesn’t get reported for two, five or ten years, you’re still covered.* Your tail coverage can’t be canceled…ever.*
Here’s how the RWC Insurance Advantage claims-made general liability policy’s up-front tail actually works:
- Occurrence policy year 1: A claim happening in year 1 and reported in year 1 is covered. A Claims-made policy works exactly the same.
- Occurrence policy year 2: A claim happening in year 1, but reported in year 2 is covered under the year 1 policy. With a claims-made policy, the claim can only apply to the year 2 policy when it is reported.
- Occurrence policy years 3, 4, and so on: The occurrence policy in effect when the claim occurred will always respond to that claim; whereas only the currently in force claims-made policy will apply.
- As a result, the RWC Insurance Advantage claims-made policy costs less in the early years and a claims-made customer will pay substantially less than an occurrence customer – anywhere from 15% to 30% the first year and 10% to 20% year two. Each year the claims-made policy will cost a little more until around year 5 it is nearly the same.
- With our up-front tail guarantee,* you can cancel, or not renew your claims-made policy at any time and still be covered for losses you don’t know about no matter when they are reported as long as they happened while your coverage was in effect.
A traditional claims-made policy does not have an up-front tail. With other insurance companies, a customer has to request a tail within 60 days of policy termination and be charged up to 200% of their last year’s premium! The RWC Insurance Advantage will apply a 25% charge each year for the first five years to fund the up-front tail. You can leave at any time and still get the tail coverage.*
The only real difference between occurrence and claims-made is the traditional claims-made policy could leave you with no coverage after you terminate your policy. With our up-front tail guarantee* we’ve removed that difference and saved you money on your general liability for the first several years. Why pay more?
Call us today for a free, no obligation quote at 866-454-2155 or visit us on the web at www.RWCInsuranceAdvantage.com.
*(The up-front tail can be cancelled only for non-payment of premium, or insurance fraud. Once paid in full, the up-front tail cannot be cancelled or denied for any reason. The up-front tail is called a Supplemental Extended Reporting Period, or SERP, in the policy. Premium savings may vary; additional discounts may apply.)