To quote or bind your risk, an insurance underwriter may have you fill out a supplemental application. A supplemental application is a standard form that helps the underwriter learn more about the client to provide a faster quote.
The application asks for class-specific information to help underwriters assess whether the risk fits within the underwriting guidelines. Here’s why a supplemental application is beneficial:
The Supplemental Application acts as a cheat sheet for the insurer.
For example, supplemental applications are specific to industry: contractors, daycares, spas, and everything in between. Each form is tailored to that particular industry, so the questions will vary from risk to risk. The supplemental application provides a good jumping-off point for writing a policy quickly.
From there, we can customize coverage based on the business’ needs through exclusions, limitations, and manuscript forms.
2. The supplemental application increases efficiency for the agent.
An agent’s success depends on getting a quote fast. A supplemental application helps achieve this goal by walking you through what you need to get from your client without missing any critical details.
At Craig & Leicht, we strive for a fast and efficient workflow. Supplemental applications make our job (and thereby, your job) easier by providing us with a clear guideline to follow.
3. The supplemental application eliminates confusion and increases the speed
There are no cookie-cutter risks. Each industry has its variability, and each business within that industry will have different exposures. That’s why it pays to be specific.
Let’s say you’re trying to get a quote for two different “day spas.” One is more of a small nail salon that offers eyebrow waxing and shoulder massages, but not much else. The other salon is a high-end spa with tanning beds, facial treatments, saunas, and acupuncture. The latter of the two will have more risks under their broader offerings.
The supplemental application will pick up on all of these differences for you. That means you don’t have to continually ask for clarity from the insured, going back and forth to get the answers you need for a quote. The supplemental application draws out all of the necessary information in one go.
4. The supplemental application ensures all areas are covered.
Craig & Leicht might not cover all aspects of a policy, and a supplemental application makes sure you are insuring everything a client needs. Need to soften this for E&O purposes
Does your client’s exercise studio have a daycare that wouldn’t be covered by traditional insurance? Does your client’s bar have a beach volleyball court in the back? Failure to cover these things could be detrimental to your client and your business.
It can be tricky to think of all of the areas that could contribute to risk. Supplemental applications do the work for you by asking the tough questions, so you can provide the coverage your client requires.
5. The supplemental application provides a better understanding of the client.
Even if you’ve written policies for dozens of clients in a market over time, you wouldn’t want to provide them with a pre-written policy that doesn’t address their individual needs, right? You need to be able to determine what makes your client different.
Not all surplus lines risks are as easy to identify. The answers to the questions on a supplemental application could lead to more follow-up questions that the underwriter will want to know.
At Craig & Leicht, we’ll never ask you to provide unnecessary details just for the sake of wasting your time. Our diverse market experience informs the type of questions we ask. We know a thing or two about risk and how to cover it. Supplemental applications help all parties involved work through the process quickly so you can get a quote in hours, not weeks.