Smoke and Mirrors

Funny thing about insurance…

it is one of the things people hate to have, hate to pay for, and hate to use. But it is also something that, if you look hard enough, can be found, but you must ask for it or accept it when it is offered.

We are aware of recent social media postings and even phone calls implying that the RSIG policy doesn’t provide coverage for fences and business-owned property and that a policy called an Inland Marine policy is available to cover these things for you.

Technically, that statement is not wrong. As you know, the RSIG group policy does not provide coverage for your owned property; an inland marine policy can be available for these coverages…at a cost to you. The RSIG group policy was designed to provide coverage for like activities that otherwise couldn’t and wouldn’t be insured elsewhere at a time when no one was interested in the repossession market. Our repossession insurance program started in 1988 and was one of the industry’s first and still the longest insurance program in the program today.

The vast differences in geographical locations, age/construction of buildings, types of security, types & age of trucks, vehicles, etc., demand that these coverages be underwritten individually to ensure proper pricing. That is why when Lighthouse writes your owned auto coverage, they also ask what other coverages you may be interested in.

They have been providing access to inland marine coverages for buildings and property in conjunction with the owned auto/tow truck policies for years. That coverage can include coverage for your buildings and your fence, and it can also include your camera systems, laptops, dollies, etc. All you have to do is say you’re interested in the coverage, and we work with our carriers to get your property covered. This coverage is nothing new to us, and it isn’t something newly available to you. Still, you DO have to say you want it, provide the required applications and information, and be prepared to pay the additional premium. These coverages are not generally incredibly costly, but as with any policy, when you add coverage, you also add costs.

For example, other providers invoice separately for Employee Dishonesty or Cyber coverages. On an individual policy, that is coverage you must elect to have, which is an additional cost. However, the RSIG program includes these coverages on its group policy; the price of this coverage is included in the per repossession rate you pay. Therefore, it is not a separate cost to you.

Our group policy also includes your wrongful repossession coverage with a $1,000,000 limit as required by most of your major client and forwarder contracts. However, we are aware of other providers using a little smoke by providing a sub-limit of $100,000 in wrongful-repo. At the same time, they mirror the general liability limits of $1,000,000 without showing this wrongful repossession sub-limit on the insurance certificate. Still, it will be in the quote and policy.

In these cases, you would likely incur an additional premium to get higher wrongful repossession limits, employee dishonesty, or cyber coverages. Still, it is something you’d have to ask for and provide additional information to obtain.

RSIG was created to provide the best-needed coverages specific to the repossession industry; through our relationships with the agencies, brokers, and carriers we work with, we have evolved to offer the additional coverages the professional repossession agency owner needs.

We have a long, proud history of evaluating the needs of the industry and meeting those needs with exceptional experience, products, and service.

Ed Marcum

President and Chief Executive Officer

Recovery Specialist Insurance Group