Why Your Underwriter Is Important

The underwriter is the employee at your insurance company who decides how much coverage to provide and what premium to charge you.

Between 20 and 30 percent of your business insurance premium is in his control – coverage decisions too.

Insurers use a rating system that uses statistical data about your operation and sets a base premium.  From there, the underwriter adds debits or credits, impacting your costs.

An underwriter’s opinion of your business, your risks, and your character can have a dramatic impact on what you pay and what coverage your insurance company offers you.

The underwriter’s judgement is formed from information provided by your agent: past losses, reports from adjusters, reports from loss control inspections, and outside information.  Underwriters will review your website and Google your company, too.

You can impact your premiums by cultivating a relationship with your underwriter.  Work with your agent to coordinate a “PR” campaign, keeping your underwriter up to date on your operations and plans.

Invite the underwriter to visit your operation, if feasible.  Perhaps do a short video introduction to your operation, or a video tour.  At the least, your agent should provide pictures and a written overview of your operation.

Consider sharing your business plan or an executive summary.

The more comfortable your underwriter is with your business, the better coverage and premium they will offer.