An Individual Policy covers only one person or one company (and its employees).
The person or company purchases the policy themselves from an insurance broker.
With a Master Policy, a number of individuals with at least one shared characteristic
band together and collectively purchase a single policy.
To obtain the insurance, you may be required to belong to an association and pay a fee to join. The association retains the Master Insurance Policy, which covers the people who belong to the association. The Master Policy General Liability Insurance serves as the model for the policy covering each member of the association.
Generally, the insurance company charges fees based on the demographic composition of the group, rather than each individual's characteristics. In some cases the cost of insurance under a Master Policy plan is lower than for individual policies due to lower acquisition and administrative expenses. However, certain conditions can cause nasty surprises.
Drawbacks of Master Policies:
Review your options with a DCI Agent to learn more.
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