Q: Who is eligible for Redwoods Responds?
A: Almost all of Redwoods customers will be eligible. Customers whose GL premium was rated based on the square footage of their buildings will be eligible for GL premium audits and associated credits. Many resident camps—whose GL premiums are not based on square footage—are not be eligible for this specific aspect of Redwoods Responds, but they can submit requests for exposure changes through their broker/agent as an endorsement. As we did in summer 2020, we will continue to monitor and reduce GL premiums for camps associated with camper day adjustments. Just like all of our customer groups, we are willing to work with our camp customers to explore flexible payment terms if cash flow has become an issue.
Q: My policy already renewed, am I eligible?
A: Yes. This credit will be retroactive, and we will seek to determine a customer’s actual exposure for premiums that have already been charged during this time.
Q: Why is Redwoods now looking at alternative metrics to calculate premiums?
A: Many of our customers’ liability premiums are largely calculated using the exposure base of square footage. Square footage generally serves as an adequate proxy for calculating a good bit of the risk their organization faces. However, when an organization is operating at reduced capacity or with modified programming, the square footage is not being fully used and therefore no longer equates to the amount of risk being faced. Alternative metrics such as program revenue, participation rates, Average Daily Attendance and payroll can serve as a proxy for your exposure and will allow us to recognize the uncertainty of your future programming activity across manageable time periods. They will also give you the confidence that your liability insurance costs will be reflective of your actual operational exposure to loss.
Q: Will my premiums increase after a 4 month audit if my program revenues increase?
A: No. Each account will be rated per our guidelines to collect an adequate premium. If revenues increase over what was initially anticipated, there will be no penalty or increase. The audit will only help us determine the amount of premium to return.
Q: How long will Redwoods Responds last?
A: When we launched Redwoods Responds, we said that the program would last for as long as the square footage exposure base is a less-than-accurate proxy for exposure to loss. As most communities are now emerging from the pandemic, we believe we should see operations begin to return to pre-pandemic levels of exposure. For this reason, we anticipate that the premium credits may be ending soon. However, we are keeping this under review, depending on how the situation on the ground changes.