The UFAA program offers a standard deductible is $2,500 per claim. However, those agencies that can confirm they have zero (0) open incident(s) and/or claim(s) that have not resulted in the payment of damages or defense costs prior to the policy effective date qualify for the following deductible.
- Three (3) years agency ownership experience and claims free - $2,000 per Wrongful Act and Aggregate.
- Four (4) years agency ownership experience and claims free - $1,500 per Wrongful Act and Aggregate.
- Five (5) years agency ownership experience and claims free - $1,000 per Wrongful Act and Aggregate.
The deductible is not assessed due to defense expenses and applies only to damages paid to a claimant so if no claim is paid - you owe nothing.
Waiver of Deductible
No matter what deductible you qualify for, at no additional cost, this amount may be waived in the event of a claim that results in the payment of damages (the deductible does not otherwise apply). The waiver is achieved by providing from the insured’s file related to the claim, the items listed in the Waiver of Deductible endorsement that prove as a consistent business practice you properly document your insured’s files. Please refer to this endorsement for details.
You may also qualify for a credit to your deductible that is dependent on how your claim is settled.
- Up to 75% of the deductible amount may also be waived with a maximum of $2,000 of your Deductible if your claim is settled without court mandated proceedings.
- If your claim is settled by mediation to the satisfaction of all parties including the UFAA program insurer, your deductible will be reduced by a maximum of 50% or $2,000.
These features are offered as an incentive for loss control not currently promoted in the Farmers sponsored program.