Understanding a DRP Coverage Option

Caitlin Morgan Insurance

Purchasing an insurance policy for your company can be a major expense, but the long-term benefits of comprehensive coverage are worth the investments. While there is the potential for a premium cost to be used for a tax benefit, there are some insurance policies that provide deductible reimbursement benefits. As indicated by the team at Caitlin Morgan Insurance, there are several plans that offer reimbursement options. These include:

  • Workers compensation plans
  • Commercial general liability
  • Professional liability
  • Property insurance
  • Business automobile

Who Uses DRPs?  

Although there aren’t restrictions on who is eligible to purchase a plan, those most interested in this insurance options are financially secure companies with large deductible obligations, as well as those who participate in captive solutions. There are no changes in the nature of coverage, except that limits are usually much higher, ranging between $100,000 up to several million dollars.

Benefits of a DRP

Just like it sounds, the primary benefit is the financial boost it can bring a company. Other benefits include reduced expenses associated with third-party insurance demands, tax benefits for premium payments, increased interest in risk management, and more control of claims services. No matter what area of coverage your DRP is in, establishing practices to reduce risks and exposures can help limit the number of claims that are put on your policy. This can create long-term cost-benefits for your company.