A prompt underwriting response is the holy grail for many brokers, and as with many things in life, first impressions count.

Miramar Liability Product Manager, Dominic Ivory says that for risks submitted outside of automated underwriting platforms, an underwriter will often form assumptions based on a glance at a submission. The submissions may be looked upon favourably if they are detailed and thorough, while a brief submission may make a poor impression. 

Keep reading for five ways to ensure your submissions are prioritised. 

1. Ensure your submission accurately names the insured

Submissions need to be made under the correct name of the potential insured, which should be a legal entity or the Australian Business Number (ABN) holder and not just a trading name.

“It should be the name in which a lawsuit would be filed – if it came to that,” Dominic says.

2. Provide a detailed business description

When it comes to a description of the business, accurate and detailed information is key.

“We want to see a clear description outlining what the insured does. If a business has multiple activities, a proportionate split of turnover by activity type is very useful.”

Providing a website link can be helpful, but don’t rely upon it in place of a detailed business description. Ensure the business description captures all elements of the business and aligns with the website’s information.

Sometimes websites include products or services not disclosed. This may lead to questions which could take more time.

He adds that some occupations may be required to provide more detail. For example:

• Construction risks and construction materials manufacturers should include where the services or products will be used, such as in high-rise, underground, domestic, commercial or industrial projects.
• For manufacturing risks, supplying the details of where products will be used, including their purpose, can help streamline the process.
• Property owner’s risks must include details of the business that occupy the premises, as this may provide an insight into potential risks.

3. Provide full details on all disclosure and extension questions

Thorough submissions will include answers to all disclosure questions and feature detail about any requests for cover extensions.

When it comes to claims, he says five years’ worth of claims information across all insurance product types is required, including values involved and any remediation that has taken place to reduce the likelihood of a similar claim.

“This is relevant as it can offer an insight into attitudes to risk, particularly if a similar claim cause presents multiple times.”

Brokers should also include risk management practices currently implemented by the insured.

“This is an opportunity to show the insured’s attitude to risk management and those insureds that have detailed risk management programs in place will be looked upon favourably. We want to see that an insured’s attitude to managing risk is more than just buying an insurance policy.”

He adds that bankruptcies, criminal history or past declinatures for all directors of the business must also be disclosed.

If cover extensions are sought, the limits required and the reason for the extension must also be supplied. Simply stating that it is a cover the insured has had previously may not be sufficient.

4. Disclose the use of contractors or labour hire upfront

A leading source of liability claims comes from using contractors or labour hire companies, so Dominic says underwriters will require detail of contractors/labour hire. This includes the type of work, contractors perform for the business and how they are supervised and inducted.

“Failure to adequately induct a contractor or have an adequate system of work is often the reason behind contractor-related claims.”

Details of whether contractors have their own third-party liability cover and workers’ compensation cover are also important.

“This detail is important because in the event of a claim, workers’ compensation insurers are more likely to seek recovery from the liability insurer.”

5. Prepare to discuss pricing expectations upfront

Dominic says brokers should be prepared to discuss pricing expectations with underwriters upfront.

“There is often little value in proceeding if expectations relating to pricing are unrealistic,” he says. “If you need a price to satisfy the requirements of going to market, we can offer a non-binding indication.”

More tips to maximise success

Dominic says that in addition to these tips, brokers should send submissions promptly.

“Some risks require time to gather information and consider, including any referrals. Risks presented the day before they’re due don’t always provide enough time, which can lead to declinature.”

He adds that if a submission is sent at the last minute due to unavoidable circumstances, it should include adequate detail and be accompanied by a phone call.

Following up an emailed submission with a phone call is good practice in most circumstances.

“This can turn a 50/50 prospect in your favour as it can assist in overcoming challenges. Discussing an opportunity will enable a quicker turnaround, and we’ll even try to point you elsewhere if we can’t assist.”

What not to do

According to Dominic, it is inadvisable not to:

• leave any questions in a submission, blank.
• seek a quote on the same risk each year which makes an underwriter question how long they will hold the risk if they accept it.
• move accounts mid-term.

Final thoughts

“Ultimately, it can help if an underwriter sees the effort that’s been made to put the submission together. Where this is obvious, the underwriter may be likely to provide the same effort to consider the submission,” Dominic says.

“If detail is lacking, it may lead to an assumption that the broker isn’t serious about placing the business, and questions may arise as to whether it’s worth spending time on the submission. In contrast, if a submission is detailed and followed up with a phone call, it suggests the broker is serious about placing the risk.”

Contact us for more information

For more information about best practices for liability submission, the team at Miramar can help. Contact details for all of our experienced insurance professionals can be found on our website.

Miramar Underwriting Agency Pty Ltd (‘Miramar’) acts as agent for the Insurer(s) of the products, certain underwriters at Lloyd’s and HDI Global Specialty SE – Australia.