Deductible Reimbursement Program from Roundstone
Roundstone’s Deductible Reimbursement Program (DRP) is a captive-based solution that helps employers manage and predict expenses inside their self-insured retentions (SIR). Designed for brokers and agents placing mid-sized to large accounts, the DRP converts deductible-layer reserves into earlier, tax-deductible captive expenses and gives clients greater control over cash flow, loss financing, and long-term cost management.
Ideal Accounts and Appetite
This program fits employers that already self-insure—or plan to self-insure—one or more lines but want to reduce volatility and reliance on third-party funding. Typical candidates include:
- Employers with established deductibles/SIRs on general liability, workers’ compensation, or auto liability
- Organizations with stable loss histories and active risk management programs
- Companies that want to leverage surplus to self-insure additional lines over time
Example placements you might consider: a manufacturing firm with a predictable WC loss pattern seeking smoother cash flow, or a regional transportation company looking to use captive funding to manage high auto liability deductibles.
Coverage Highlights and Advantages
The DRP blends captive funding mechanics with admitted insurance to deliver predictable, tax-efficient treatment of deductible-layer costs. Key advantages for your clients include:
- Captive funding: Deductible claims are funded through DRP premiums, letting clients plan expenses more consistently.
- Tax efficiency: Certain reserve funding can be treated as tax-deductible prior to claim payout, improving financial reporting timing.
- Cost reduction: Less dependence on external financing and more direct control of claim payments and reserves.
- Capital leverage: Ability to deploy surplus to broaden self-insurance across additional lines over time.
Underwriting Notes and Minimum Premiums
Roundstone underwrites DRP accounts based on the employer’s risk profile, loss history, financial stability, and the maturity of their self-insured structure. While minimum premium thresholds vary by program design and state, DRP is generally intended for employers committed to captive funding and active risk management. Provide complete loss runs, retention schedule, and financials to speed placement and accuracy of terms.
Territories and Availability
The Deductible Reimbursement Program is offered through admitted carriers and is available in all 50 states plus Washington, DC. Because coverage is admitted, the program supports state-compliant placements nationwide.
Why Work With Roundstone
Roundstone focuses on alternative risk financing and captive solutions for brokers seeking strategic, long-term cost control for their clients. Agents benefit from a partner that delivers tailored underwriting, captive structuring expertise, and hands-on service. If you have clients considering a transition to self-insurance or looking to reduce third-party funding costs, Roundstone’s DRP can be a practical tool to smooth losses and optimize balance-sheet treatment.
Frequently Asked Questions
What types of accounts are a good fit for this program?
Mid-sized to large employers with existing or planned self-insured retentions—especially those with stable loss patterns and solid risk management—are the best fit.
How does the DRP captive improve expense predictability?
By funding deductible-layer claims through captive premiums, clients convert variable reserve timing into a predictable expense stream that can be treated as tax-deductible earlier in the cycle.
Is this program available in all states?
Yes. The Deductible Reimbursement Program is offered through admitted carriers in all 50 states and Washington, DC.
Can this program be used to self-insure multiple lines?
Yes. In addition to existing deductible structures, the DRP supports using surplus to self-insure additional lines over time, subject to underwriting and program design.
What support does Roundstone provide to agents?
Roundstone provides underwriting guidance, captive program structuring, and ongoing service to help agents deliver tailored, administrable solutions to their clients.
Need help placing an account? Connect with a market specialist.