Effective July 27, 2025, Washington State will allow service contract providers to use multiple reimbursement insurance policies (CLIP) as forms of indemnity.
Service contractor providers may now use more than one reimbursement insurance policy (CLIP) as a form of indemnity. A service contract must be insured by only one CLIP. You can’t insure the same service contract on more than one CLIP; however, you can use multiple CLIPs to cover the same category of service contract.
Meramec Secure, Inc. announces the launch of a new client program focused on the recruiting industry, integrating contractual liability insurance policies (CLIP) into recruitment solutions. This enables recruiting firms to offer strong, money-back retention guarantees for new employee placements. The initiative represents a major step forward in talent acquisition assurance, providing clients with meaningful financial protection and enhancing trust in recruitment service providers.
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Medical providers face Medicare Clawbacks for up to six years of potential Clawbacks. This relates to previously completed procedures if processing issues are identified during an audit.
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The correct term depends on what you’re looking to accomplish. Navigating the different insurance policy terms can be confusing, as their meanings and applications often overlap. The fundamental foundation is the Contractual Liability Insurance Policy (CLIP) for all the variations.
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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.
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Service Contracts, Limited Warranty, and Specialty Insurance and Service Programs
The site includes example uses for Service Contracts, Limited Warranties, Specialty Programs, and Service Programs, as well as example CLIP structures, profit participation options, and an example rate builder.
A CLIP is a great way to address regulatory and compliance requirements for Service Contracts. OEMs also use CLIPs to transfer risk off their balance sheets for their limited warranty programs. In addition, CLIPs are often an effective method to support service-oriented programs, including certain travel, event, and waiver programs.
View the site at https://contractualliabilityinsurance.com
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If you are a P&C Agent or Broker trying to help a client obtain the correct type of insurance policy for state level compliance or lender requirements for a Service Contract Provider please feel free to contact Mike Frosch, President of Personal Safeguards Group, LLC.
Service Contract Reimbursement Insurance (SCRIP)
Contractual Liability Insurance Policy (CLIP)
Contractual Liability Reimbursement Policy (CLRP)
Utah Code, 31A-6a, Chapter 6a Service Contracts has been amended and expands the definition of a Service Contract Reimbursement Policy or Reimbursement Insurance Policy to now read:
This is a requirement in Ohio that can be missed by a service contract provider for consumer goods service contracts.
Note item (B) related to the Reimbursement Insurance Policy requirement if a service contract on consumer goods covers power surges or accidental damage. (see below)
3905.423 Consumer goods contracts to be covered by reimbursement insurance. Continue reading