Limits Under Multiple Policy Years (lump)

Definition of "Limits under multiple policy years (lump)"

Alek Ploetz real estate agent

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Alek Ploetzelite badge icon

Ploetz Group LLC

Single limit insurance program remaining in force for several years as compared with traditional insurance programs where there is a series of annual limits. The LUMP insurance program is most effective in those instances where the statistical analysis shows low-frequency, short-tail (length of time elapsed between the act giving rise to the claim and when the claim is recognized or reported to the insurance company) risks that have a potential for catastrophic loss. LUMP insurance programs provide insurance coverages for such exposures as marine liability, directors and officers liability, general liability, and workers compensation.

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