Your expected annualized collateral is $. An e-mail containing these results is also being sent to you for your records.
Your collateral is driven by a combination of your loss pick and your financial statements. The insurance company will subtract an amount for the needed collateral based on your expected paid claims in the first year, and then decrease or increase the collateral amount further depending on your financial creditworthiness.
If you remain on a deductible program, you will need to keep adding more collateral each year up to approximately 3 years. After three years, provided your company size remains that same and your losses remain the same, insurance companies generally do not ask for more collateral. They do ask for collateral in the first three years. This is commonly referred to as "stacking collateral".
This type of estimate is similar for self-insurance. With self-insurance, you're working with an individual state instead of an insurance company but the process for calculating collateral is similar.
Please understand this calculation is simply an estimate. As always, we recommend you consult your insurance broker or contact Assurance for a more detailed analysis.