Top 5 Reasons Underwriters Deny General Liability Submissions

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Top 5 Reasons Underwriters Deny General Liability Submissions

General Liability insurance is essential for businesses, but getting your submission accepted can be a challenge. Here are the top 5 reasons why underwriters deny General Liability submissions and tips from underwriters on how to increase your chances of acceptance.

Ineligible Risks

When choosing an MGA to partner with, it’s important to consider their areas of expertise and market appetite. For example, Greenwood specializes in programs for small to medium-sized businesses, particularly artisans and contractors. However, even with a wide variety of contractor risks covered, some risks – like roofing with hot tar or torch down work – may not be approved for certain classifications.

“90% of Applications with errors could have been approved ”
-Greenwood Director of Underwriting

One of the most common reasons for rejection is errors on the application. To avoid this, it’s best to confirm with the agency that your application is accurate and error-free before submitting it. Underwriters will also review the claim history of the insured to ensure they don’t pose a significant risk. Any unresolved claims against the insured will result in immediate rejection.

Greenwood General Insurance Agency is staffed with seasoned Underwriters  ready to assist you in your risk submission to ensure all the necessary information is provided. The Underwriters at Greenwood specialize in providing our brokers with everything they need to ensure their success.

Claims History

Another factor an underwriter will consider when reviewing a General Liability submission is the claim history of the insured. They will review the claims made by the insured before providing a quote to ensure that the insured does not pose a significant risk to the insurer. If there are any unresolved claims against the insured, the submission will be denied immediately.

 

“Insurance fraud causes $80 billion worth of damages to consumers”
-Insurance Information Institute

Insurance fraud

Of course Insurance fraud is a serious concern for underwriters. To avoid any civil or criminal repercussions, they will thoroughly investigate the insured to ensure they are receiving accurate information. As a broker or agent, doing your own background checks on the insured can save time and help avoid rejection.

Bad faith denial

Last but not least, the broker or agent’s CSLB license will be checked. If it is suspended or expired, they will not write business with that broker or agent. When requesting a quick estimate, it’s important to inquire about the program’s rules before submitting a risk, to avoid rejection. If a risk is rejected by a General Liability program, it can always be submitted to the wholesale division, but with a longer turnaround time.

“There is a 40% Chance of a Small Business Filing an Insurance Claim ”
-Fit Small Business

In summary, to increase the likelihood of acceptance for your General Liability submissions, choose an MGA that aligns with your business’ risks, double-check your application for errors, have a clean claim history, and avoid insurance fraud. It’s also important to inquire about the program’s rules and to have a valid CSLB license. If rejected, you can always submit to a wholesale division.

 

Resources: Legal Jobs

Here at Greenwood, we focus on fast communication and easy applications, which is what makes our brokers so successful. Get started by booking a free demo with our best Underwriter.

Greenwood General Insurance Agency

Exclusive General Liability programs specifically designed for contractors and artisans

  • Multiple “A” Rated Carriers ; Non-Admitted
  • 50+ Classifications including General Contractors
  • Online or Self Rater (2 minute process
  • $500 Minimum Premium on Most Classes
  • No Prior and New Venture OK
  • Flexible Underwriting

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