11 Questions to Ask Yourself Before You Talk to an Underwriter
Preparation is the key to any successful negotiation. Having a detailed description of all operations, insured parties and dates that the operation began or ended can have a big impact on pricing and coverage options when renewing or shopping for insurance.
Understanding your own risk is the first step to obtaining appropriate coverage. HUB International recommends that you ask yourself the following questions before meeting to discuss your insurance needs.
- Have you acquired, sold or discontinued any operations?
- Do you plan any new construction, alterations or property acquisitions?
- Have you paid off or disposed of any major capital asset?
- Are there any new corporations, partnerships, limited partnerships or joint ventures?
- Has your company engaged in any new activities or operations?
- Are there any new contractual agreements, including lease agreements for real estate?
- Are there any new locations?
- Are there any new products or services?
- Has the financial control or share structure of your firm changed substantially?
- Have there been any unreported legal actions brought against you?
- Have your operations changed in a way that may expose you to additional insurance requirements?
If your business has experienced or will experience any of these changes, your negotiations for coverage will require additional documentation. Ask these questions now and give yourself adequate time to gather the information you need.
The price of waiting until the last moment could be high: unexpected rate increases, restrictive terms and larger deductibles. Working with your insurance advisor to understand your coverage needs will make a difference in the success of your business during these uncertain times.