Business owners should only insure risks they actually face. A bakery doesn't need foodborne illness coverage, and a company might accept a $1 million to $2.5 million deductible on a $10 million property to lower premiums.
You can't participate in risk that you don't really have as a business owner. You would have to have the policy for different types of risk. And the reason why, for that biggest reason, is one of the four-part tests is distribution of risk. You can't participate in risk that you don't really have as a business owner. The best example I give on that is foodborne illness. If you don't manufacture, distribute, or produce food, then you don't have that risk. And so why would you be in this pool? So that's why we segment the policies out for the business owners. And then two, we just do a deep dive on the clients and understand what the real risk is, what risk they're retaining. Deductible reimbursement is someone that we start the fund for because we got clients that will take on a 10-20% coinsurance clause on property today. You know, if the building's worth $10 million, they're on the hook for anywhere from $1 million to $2.5 million. Those are sizable deductibles that we're seeing today. And that's really to offset the cost of the premiums and then be able to get a policy.
