Redwoods Responds

In Uncertain Times, We’re Offering a Pricing Initiative You Need

In times like these, you need responsive, creative business partners. That’s why we are launching Redwoods Responds—a new pricing initiative that will offer our customers more favorable pricing at a time when many are operating at a significantly lower capacity with modified operations—meaning their exposures to loss have changed too. This approach will better reflect your current operations, and allow us to provide premium credits as you adapt to the current situation on the ground.
If you missed our Redwoods Responds webinars, please feel free to watch and share the recordings.

Here’s What We’re Doing

Redwoods Responds will do three things for you:

1.  Credit Premiums Based on Your Projected Programs

At your next renewal, you’ll have the opportunity to adjust your off-site related exposures based on your best projections for the upcoming policy year.  These projections will likely reflect a lower exposure to General Liability and Workers’ Compensation losses, and therefore should also reflect lower premiums. (You can also work with your brokers to submit an endorsement request at any time if there are significant changes to exposure not predicted at renewal.)

2.  Audit Your Programs Every 4 Months

The GL portion of your current coverage will have previously been calculated using square footage as a proxy for exposure. That means there will likely now be a mismatch as your operations have changed. That’s why, regardless of the renewal date, and starting June 2020, we’ll ask for an update on either program revenue or Average Daily Attendance every four months, and compare those to the same period a year earlier. If the data is lower, year-over-year, we’ll credit your GL premium retroactively. (Program revenue is defined as all revenue, minus philanthropic and government funding.)

3.  Offer Responsive Payment Terms

Because we know cash flow is a challenge when revenues are down, we can work with customers to establish a lower monthly payment, allowing future credit to cover the amounts that would otherwise have been owed.

What’s Next?

Redwoods will send a form on February 1st, 2020, to all organizations who are eligible for Redwoods Responds GL Premium Credits. There is nothing you need to do until then to take advantage of this offer.

Some Frequently Asked Questions

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. 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 to any accounts that were active at any point during the policy period 10/1 – 1/31, regardless of when they renew.

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: The program will last for as long as the square footage exposure base is a less-than- accurate proxy for exposure to loss. Redwoods Responds is designed to provide relief for the crisis we are currently in—but we know that the crisis will have ramifications for many months and possibly years to come. We will be applying this pricing initiative for as long as is realistically needed to support our customers as they emerge from the pandemic itself, and the financial aftermath that is likely to impact their operations also.

For more information, please download our full FAQ.