FAQ
Frequently Asked Questions
In this sectionFrequently Asked Questions
- What is the maximum my company will pay for any one claim?
- The most your company will pay out-of-pocket for any single claim is your maximum deductible for that loss. Once your deductible is met, the shared Group Account pays the next portion. If a claim is substantial and surpasses the group's single claim deductible, reinsurance covers the rest.
- Where is coverage available?
- Ballast Mutual is designed to support coverage in all 50 U.S. states and in Canada. Through the Policy Issuer that places the ultimate policy, the program can write across that territory while remaining domiciled in Tennessee. If your work requires foreign liability outside the United States and Canada, your retail broker can arrange that coverage with another carrier.
- What happens to my Independent Account balance if I decide to leave Ballast Mutual?
- When you leave the program, we hold back only the minimum equity required in your Independent Account as required by our insurance regulators. Investment income earned on your account, and any equity above that regulator-approved minimum, is available for withdrawal. The held-back minimum stays in place only as long as it is needed to support open claims or potential developing losses from your participation years; as those claims settle and close, the remaining balance is released to you.
- Who handles claims day-to-day, and do I have a say in settlements?
- Day-to-day claims adjustments and management are handled by the designated Claims Handler on behalf of the Policy Issuer. Members maintain active input, transparency, and an advisory voice regarding claims defense and settlement strategies for their accounts.
- Are my Independent Account contributions considered a tax-deductible expense or capital equity?
- The contribution is structured as member equity and capital rather than a traditional sunk-cost premium fee. (Members should always consult their CPA or tax counsel for specific corporate tax treatment.)
- What triggers a call on the Group Account, and could my company be assessed extra fees if another member has a massive claim?
- Because of the legal segregation of Independent Accounts, other members' losses cannot reach or levy extra fees on your individual account. Losses only escalate from your Independent Account to the shared Group Account, and subsequently to backup insurance via reinsurance, completely shielding your personal account from unexpected external assessments.