What Is Runoff?

​A runoff insurance policy is a long-term contract written specifically to last until a certain date or until all of the demands against the coverage are resolved. For example, you may buy a runoff policy that may remain in force until all claims against your company have been closed or settled. They help protect you from the risks that may occur in your field, like weather or equipment breakdowns.

Why Do Companies Need Run-Off Insurance?
Runoff insurance is designed to cover the cost of closing down a business. It may be used by companies contemplating selling their business or if they have been sold and need to close down immediately. Runoff insurance may also be used by companies challenged with insolvency proceedings but don't want to go through.

How does run-off insurance work?
Runoff insurance is liability insurance that pays the costs associated with damages caused by a third party. It's also called "runoff hire" or "contingent fee" because it pays for certain losses, but not all. The policyholder may be required to pay a premium to the insurer to cover their costs when they're at fault in an accident or incident.

Runoff insurance is a provision under insurance policies that covers a limited period of time after a policyholder stops carrying on a business.
It is a kind of policy that protects the time between when coverage is terminated and when it ends. Runoff may be used to cover expenses incurred by you while your business was in operation, or it may be used as an incentive to keep your company running once it has ceased operations.

How long does a company need to pay for run-off insurance?
The average is between one and three years for most businesses, but it may be longer depending on how much money you owe in damages or losses. For example:

Suppose your business has a lot of equipment that needs fixing after an incident with water damage from a flood. In that case, it may take longer than normal for your equipment to be repaired since there are so many things involved in ensuring everything works properly again after being ruined by water instead of just repairing what was damaged (like faucets).

Conclusion
Runoff insurance is a great way to protect your belongings from theft or damage while they are on the move. The runoff cover cost varies depending on your possessions' value and how much coverage you want. There are many different types of insurance policies available, so make sure that you choose the right one for your needs.

At CSIS Insurance Services, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (888) 501-2747 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!