AJ Wayne is proud to introduce a new blog series entitled Everyday Expertise, where our experienced brokers share valuable knowledge and observations that may be new and helpful to you and your agency as you navigate the world of Professional Liability insurance.
Enjoy our first offering below!
The Application question…
It is a common misconception that the first contact a broker has on a submission always has to be receiving an application. While that can be true in some cases, it is often overlooked that a critical first step can be the discussion with the agent on which application is most appropriate for the insured.
Whenever I get a call from an agent regarding a new submission, the first thing I do is pull up the applicant’s website. Most businesses have sections of the company website dedicated to services they offer to others for a fee. If the exposure is straightforward, I can advise the agent which application to use and even generate a cyber liability indication for the applicant, provided I know the applicant’s address, revenue for the last 12 months, and nature of operations I ascertain from the website.
If the account is more difficult or has exposures that require manuscripting of special endorsements, I then “premarket” the account to several underwriters before I decide which application to send to the agent. This “premarketing” process is important because it allows me to get an idea of an insurance company’s interest level before the application is completed. I can also usually get an idea of minimum premium levels which are normally very useful for an agent to prequalify an account.
Most applicants do not like the process of completing an application. Starting the process of marketing a submission can be a lot smoother when an agent can advise their potential insured that a broker has reviewed their website, and had a discussion with an underwriter who has expressed an interest in trying to partner on the account.
Writing new business, whether it be large real estate agent that offers multiple services or a hard to place architectural firm, is always challenging in a competitive market where the insured has more choices that ever before. Having that initial discussion and making an extra effort to tailor the application to the applicant’s business offers added value and can ultimately save the applicant precious time. This extra effort can ultimately mean the difference between a binder and never receiving back the application at all.
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