Meramec Secure^®

Product and Service Guarantees

Meramec Secure^® helps clients build custom insurance-backed solutions to support product and service guarantees. This delivers important differentiation for InsurTech, FinTech, and service-oriented companies looking to show financial security and backing for their businesses.

This includes traditional warranties and guarantees, as well as SaaS platform guarantees for usage, uptime, and service-level commitments (SLAs), redeployment of contractual obligations, early termination, warranties, and refunds.

This program provides the financial strength of an insurance carrier to back a company's Guarantee or Promise. This is often a requirement for clients concerned about what happens if the company fails.

The programs are generally supported by a Contractual Liability Insurance Policy (CLIP) using one of these models:

Full Coverage CLIP
A Full Coverage CLIP policy is where the carrier pays 100% of all claims. The premiums are paid to the carrier, which then pays all claims.

Failure to Perform CLIP
A Failure to Perform CLIP, sometimes referred to as an Insolvency CLIP, is a policy that only pays claims if the company making the promise or guarantee fails. This is typically structured with a claim reserve trust account funded by the client, and the carrier receives only a small premium. All claims are paid out of the trust account. The policy is only responsible for claims when the claim reserve trust fund has been exhausted and the company is insolvent.

Excess Coverage CLIP
Coverage only applies when a deductible or self-insured retention level has been reached. This may be a funded claim reserve account or other agreed-upon methods.

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