DRP Benefits and Uses

Benefits

• Accelerates the tax deductibility of claims within the primary policy's deductible layer
• Removes the liabilities from the Insured’s balance sheet
• Allows for the issuance of letters of credit

Uses – Industry Specific Examples

The deductible associated with:

• Long Haul Trucking Operation (physical damage, cargo coverage)
• Cattle Rancher (animal mortality)
• Contractor (rip and tear coverage)

Uses – Other Examples

• Employer portion of self-insured benefits plans
• Deductible portion of a large deductible workers compensation plan
• To provide aggregate coverage (e.g. Cover $250,000 per claim retention with no aggregate)
• Property: Coastal wind, All Risk Deductible for large property schedules