Thanks in large part to a long-term relationship with Lloyds of London, South Western Insurance Group Limited has been making commercial liability coverage available to a broad range of classes for many years. The company offers CGL protection in conjunction with errors & omissions coverage, but underwriter Margo Parker says most of her clients come looking for stand-alone GL insurance.
“We provide third party liability coverage for a lot of contractors – pest control companies and heating contractors, for example – but we also write risks that range from manufacturing, to vacant land. And in every one of these cases, there are a handful of points that not only define what makes a good submission, but that guarantee greater efficiency.”
According to Parker, the four keys to unlocking faster CGL submission turnaround times include fully detailed descriptions of the client’s:
- Business Operations,
- Revenue Breakdown, including the percentage of revenue generated from each operational area and whether it involves US or foreign income,
- Subcontractors, including what percentage of business is subcontracted out, and
- Prior Claims History, including details pertaining to any open or closed claims, what exactly happened with regard to those claims, what was paid out, and – if possible – whether there was a reserve on the claim.
“These are the four submission areas that tend to get missed or glossed over. Yet when we review a submission, this is exactly the kind of detailed information they need. So, the more back and forth that is required to get the right questions answered, the more delays happen in terms of quoting and confirming coverage.”
There are a number of reasons why so many CGL submissions are incomplete, Parker says. Sometimes a broker will be submitting to multiple insurance companies, and so will provide only the most basic information to get the paperwork out as quickly as possible. Other times, the insured will fill out the application, not understanding that a simple “yes, there are subcontractors” is not enough information to move forward with.
“A lot of the submissions we receive,” Parker adds, “take the form of general applications that are not specifically geared toward the CGL side of things. While they will typically include items like term, description of operation, prior insurance, and limits of coverage required, they often do not address details related to revenue breakdown or subcontractors.”
The main point brokers should keep in mind when applying for CGL coverage? The more details, the better, states Parker. By far, the majority of submissions she receives lack the crucial information she needs.
“And that is understandable if a broker is just price-shopping, because every underwriter underwrites differently. Some will bypass certain areas that are not as important to them, some will ask more questions than others. But because SWG offers high limits for a wide range of classes with Canadian, American, and international operations – as well as an innovative approach to complex placements, and competitively priced coverage and commission – we need a certain amount of detailed information to provide the level of service we do.”