Meramec Secure Supports Expanded Uses for a Contractual Liability Insurance Policy (CLIP) for Limited Warranties and Service Guarantees

Chicago, IL, January 10, 2025 --(PR.com)-- Companies have used Contractual Liability Insurance for years to support service contracts for regulatory and other purposes. Today, many other businesses offering Limited Warranties or Service Guarantees frequently encounter the question, “What backs this warranty or guarantee?” This question is critical to clients seeking peace of mind that something supports the warranty or guarantee beyond the company's promise.

In some cases, clients will not do business with a company that doesn't have adequate backing for its promise or guarantee.

When a company offering a warranty or guarantee cannot perform due to insolvency, clients have few recourse options. A multi-year guarantee is worthless if the company making the promise fails.

Meramec Secure has created several new solutions to address the expanded uses of a Contractual Liability Insurance Policy for a wide array of products, programs, and services.

For companies seeking a reliable solution, a Contractual Liability Insurance Policy (CLIP) provides a financially stable method to protect clients. This solution ensures financial backing for a wide range of products and services, including but not limited to:

- Service Guarantees
- OEM Product Warranties
- Retailer Product Warranties
- Dealer Product Warranties
- Performance Guarantees
- Waiver Programs
- Event Cancellation Programs

InsurTech companies and product innovators frequently utilize CLIPs to aid in new product launches and create embedded insurance solutions, providing consumers and business partners with peace of mind and real protection.

In addition to securing financial backing, CLIPs offer unparalleled customization, allowing companies to meet the unique demands of their products and services. This flexibility extends to innovative applications and uses, enabling businesses to innovate and stay competitive in a rapidly evolving market.

Given the complexity of new programs, companies should work with experienced professionals who can provide experience and resources to support each opportunity. This includes:

- Compliance Reviews
- Build a Rate Structure with a CLIP Provider
- Rate Adjustment Mechanics
- Reserve Adjustment Mechanics
- Revenue Recognition Implications
- Profit Participation Options
- CLIP Structural Options (tailored to each unique opportunity)

Meramec Secure supports clients with a step-by-step solution for setting up new CLIP programs. If you would like more information on CLIPs or to explore solutions tailored to your business, visit Meramec Secure.