Large Deductible Reimbursement Policy

In insurance, the deductible is an expense that must be paid   out of pocket before an insurer will pay any claim or expense under the policy. Deductibles are typically quoted as a fixed dollar amount and are a part of most policies covering losses to the policy holder.

This deductible must be paid by the insured, before the benefits of the policy can apply. Typically speaking, the higher the deductible, the lower the  premium, and vice versa.

Money Jail

Weakness of Traditional Large Deductible Programs

First, the insuring carrier acts as “the bank” – meaning they dictate the timing and amount of security required.

This setup minimizes the portability of the program to other carriers, thus creating a sort of “collateral jail.”

Second, the client assumes the large deductible risk on its balance sheet without the tax and accounting benefits afforded traditional carriers.

And last, the client lacks an insurance vehicle for justifying future large deductible claim obligations to third parties.


UniRisk Can Help You Sieze This Opportunity


UniRisk has the ability to implement a structure involving two policies; one issued by Insured’s current insurance carrier with a large deductible component, combined with a uniquely crafted second policy called a Deductible Reimbursement Policy (Deductible) issued by UniRisk.

The UniRisk Deductible is highly customized to satisfy the traditional large deductible obligations, including collateral requirements, claims escrow and paid loss reimbursement.

  • Budget stability
  • Tax deductible premium
  • Ability to allocate deductible premiums among many insured’s


Insured pays claims up to occurrence deductible limit and up to annual aggregate limit.

Admitted Policy is issued by A rated nationwide carrier(s).

Cash Flow and Collateral are flexibly determined based on the Insured’s needs

Generally, minimum standard Premiums are $700,000.