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Insurance Made Easy

Insurance Made Easy

Insurance Made Easy: The Hammer Clause

Image - ReginaldReggie Says: The Hammer Clause is a provision found in most professional liability insurance policies. A typical Hammer Clause contains two elements:

1. It requires the Insurer to gain consent from the Insured prior to settling a claim.
2. Without the Insured’s consent, it limits the Insurer’s responsibility for the amount of a plaintiff approved settlement, plus defense costs starting the date that the insured removed consent.

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Insurance Made Easy

Insurance Made Easy: SIR vs Deductible

Reggie Says: SIR vs deductible. What is the difference between the two?Image - Reginald

A self insured retention, or SIR, is and amount specified in a liability insurance policy that must be paid by the insured before the insurance policy will respond to a loss. The SIR typically does not erode the limit of liability.

A deductible, on the other hand, is a portion of an insured loss which must be paid by the insured. The carrier will typically pay the entire claim, and then be reimbursed by the insured. Unlike an SIR, a deductible erodes the limit of liability in the insurance policy.

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Real Estate, Insurance Made Easy

Insurance Made Easy: Risk Purchasing Groups

Image - ReginaldReggie says: Established under the Federal Liability Risk Retention Act of 1986, Risk Purchasing Groups are a legal entity that allows a group of unassociated businesses with similar risk characteristics to join together to take advantage of a joint insurance purchase.

Innovation is a tradition at Distinguished Programs. It dates back to 1987 when we pioneered the country’s first real estate umbrella purchasing group. This provided a much-needed solution for real estate clients who were unable to purchase the limits needed at affordable prices. Read more about how our founder, Andy Potash, pioneered the first Real Estate Umbrella Risk Purchasing Group.

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