What it does
Massachusetts law sets a standard $500 physical damage deductible that may be reduced to a minimum of $300, subject to the servicing carrier's underwriting rules. CAR's Rule 42.B provides: "Waiver of Deductible is available at the option of the insured. Use Waiver of Deductible – Massachusetts Endorsement MM 99 17." As its title says, the endorsement waives the deductible in the circumstances it describes. The current edition is 10 13.
Key points
- CAR states that, unless otherwise specified, the charge for waiver of deductible is not subject to primary or secondary rating factors.
- The cost to reduce the deductible from $500 is subject to rating factors.
Who needs it
Massachusetts businesses that want to avoid out-of-pocket deductibles on certain physical damage losses.
Quoting notes
Explain which losses qualify for the waiver under the endorsement's wording, and compare its cost with simply lowering the deductible.
