Why files get declined
A decline is rarely about the client alone. It is usually one of a handful of reasons, and each one needs something different from you.
| Reason | What underwriters need to see | Where it usually goes |
|---|---|---|
| Loss history | Loss runs with a narrative per claim, what caused it, and what changed after | An underwriter, with terms built around the history |
| Class not on the list | A plain description of the work, revenue by activity, contracts | A program that fits, or the Hard-to-Place Facility for E&O |
| Operations outside appetite | The riskiest part of the work, its share of revenue, controls in place | An underwriter, who may offer terms with conditions |
| Building or occupancy | Vacancy plan, renovation scope, inspection and security | Vacant, builders risk or COC programs |
| Limit or size mismatch | Revenue, limit asked for and why (contract, lender, regulator) | An underwriter, on the file |
| Cancellation or non-renewal | The letter, the reason given, and the fix | An underwriter, after the reason is addressed |
Lines we place on hard files
| Line | Where it helps | Page |
|---|---|---|
| Errors and omissions | Six programs plus the Hard-to-Place Facility for classes outside them | E&O |
| General liability | Class-rated CGL, with classes outside the grid referred to an underwriter | General liability |
| Specialty contractors | Trades where manual work is the problem | Specialty contractors |
| Property in transition | Vacant buildings, renovations and new builds | Specialty programs |
| Legal expense | Covers the legal fight the other policies leave out | Legal expense |
| D&O and trade credit | Management liability and receivables, placed file by file | D&O, trade credit |
| Surety | Contract and commercial bonds for the same client | Bonding |
The Hard-to-Place Facility for professional classes
Some professions sit outside our six E&O programs. The Hard-to-Place Facility reviews them through the same submission. Classes it writes include many of these:
- Mortgage brokers, property appraisers and home inspectors.
- Financial advisors and wealth managers.
- Loss adjusters and OH&S consultants.
- Auctioneers.
- Advertising agencies.
Send the file the same way as any E&O submission and we route it. Every risk is subject to underwriting.
How a hard file moves
- Send it once. Any application, ours or the incumbent's, with the documents below.
- A person reads it. An underwriter looks at why it was declined and what has changed.
- We look for fit. Our programs first, then domestic and international underwriters, including Lloyd's.
- You get an answer. Terms, questions that would get to terms, or a clear no with the reason.
A complete file saves a round of questions: the decline letter, loss narratives and the fix, written up before you send.
Insurance and surety under one roof
Hard casualty files and bonding often come from the same client: a contractor with a loss on the CGL who also needs a performance bond. Send both in the same email. One back-shop sees the whole account.
