The continuation of the hard market is evident as both standard and E&S carriers face underwriting challenges contributing to a narrowing of business appetites and thus increasing shopping for retail agents and brokers. Effective submissions get you noticed and help achieve results that improve the insurance solutions you provide. RT Binding wants to help you help your clients with the below advice on what makes an excellent submission!
General Submission Information
- Tell the story (below is a guide for information that may be helpful to provide during the submission process. More complex risks will likely require more information than straightforward risks.)
- Confirm admitted markets are not in play
- What is needed to sell the account?
- Provide the target premium with the understanding that premiums are generally rising in the current marketplace
- Are you the incumbent agent or are you trying to win the business?
- Is there competition? If so, describe
- Have you engaged other wholesale brokers?
- If so, provide the markets already approached
- Provide details on current carrier, renewal premium and terms
- If non-renewed, provide the following:
- Reason for non-renewal
- Confirm legal notice was sent in accordance with state requirements and provide a copy if possible
- If this is their first insurance policy
- What date did they begin operations, and why are they looking for coverage now?
- If for a new purchase, provide the projected closing date
- If non-renewed, provide the following:
- Include fully completed applications providing insured name, mailing address, and physical address to avoid follow up questions
- Acord 125/126/140/131 and supplemental applications are preferred
- Business owners (BOP) Acords and Acord supplementals are less applicable and likely to slow down the process
- Provide any loss runs available
- Explain details of losses and mitigation to avoid similar future losses
- Explain any coverage gaps
- For lessors risk: provide operations of each tenant
- For habitational risks, insurers request the following: any subsidized, student, or elderly units? How many of each?
General Liability Specific:
- Do all lessors risk tenants have insurance with $1 / $2M limits naming our insured as additional insured? (AI)
- If this insured is located in a region that gets snow and ice, is there a snow removal contract in place with a subcontractor? Do they name the insured as AI? Do they provide hold harmless wording in their contract with the insured?
- If there is NY exposure, policies will generally exclude action over/labor law. Please advise up front if this coverage is required so that the risk can be referred to brokerage; action over/labor law coverage is not offered by binding authority carriers
Property Specific:
- If the building is over 50 years old, is the building on the historic registry or in a historic district?
- In order to offer special / replacement cost (RCV), most carriers require buildings over 30 years old to have had substantial updates to the roof, electric, heating, and plumbing. Please provide the year for each or the markets will most likely only offer basic form and actual cash value (ACV).
- Have you verified the RCV / ACV limit is adequate utilizing a building cost estimator in the past year? Many carriers have placed minimums per square foot with the increases in building costs in the past few years
- Most carriers exclude theft without an active central station burglar alarm. Theft will be excluded if alarms are not verified on the application
- E&S carriers do not offer business income on an actual loss sustained basis. Please provide a limit and coinsurance or monthly limitation
- Not every carrier offers no-coinsurance / agreed value. If you are requesting this, please provide the building valuation report or appraisal for consideration
- It’s not a deal breaker in all cases, but below listed electrical panels or wiring systems need to be listed if they exist. If post binding inspections reveal any of them, mid-term cancellation is likely
- Federal Pacific
- Stab - Lok
- Zinsco - GTE Sylvania
- Square D on recall list
- Knob and Tube wiring
- Aluminum wiring (full replacement with copper wiring, Copalum Method, and AlumniConn connector may be acceptable)
- Fuses
- Any panel or wiring identified as having an ongoing or past recall for fire hazard
Excess Liability Specific:
- Please provide:
- All underlying policies/quotes/binders showing limits, premiums, classes and exposures
- Hard copy 3-5 year loss runs for all underlying lines
- Explanation and remediation of any losses
- Details surrounding open losses if any
- MVR and driver list for excess over auto
- Supplemental application (request from your RT underwriter if you do not already have one)
RT Binding Authority is a part of the RT Specialty division of RSG Specialty, LLC, a Delaware limited liability company based in Illinois. RSG Specialty, LLC, is a subsidiary of Ryan Specialty, LLC. RT Binding Authority provides wholesale insurance brokerage and other services to agents and brokers. RT Binding Authority does not solicit insurance from the public. Some products may only be available in certain states, and some products may only be available from surplus lines insurers. In California: RSG Specialty Insurance Services, LLC (License #0G97516). ©2024 Ryan Specialty, LLC
