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Coverage for Each Type of Policyholder
Terra offers policies for three types of policyholders: prospectively rated, retrospectively rated, and custom retro rated.
Prospectively Rated Policyholders are the staple of the industry. Policyholders pay a premium based on a percentage of their gross reported revenues, and receive a policy limit. Terra offers prospectively rated policies to firms whose gross annual revenues are less than $20 million.
Retrospectively Rated Policyholders are firms that prefer an "assessable insurance product" and have annual revenues of $5 million or more. These firms can earn substantial premium refunds for favorable claim experience, or they could be liable for additional premium if their losses exceed certain thresholds.
Custom Retro Rated Policyholders are firms that pay a large portion of the loss and expense beyond Terra's predetermined retentions. These policyholders generally are firms whose gross annual receipts exceed $40 million.
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