Product Update

Shopping Your Insurance Program and Drafting Insurance Specifications in Construction Risk Management

This release of Construction Risk Management contains an updated article on how and when to shop your insurance program with tips for drafting insurance specifications.

Periodically shopping your insurance program is an accepted risk management tool and can be effective when done correctly. However, following industry-accepted protocols and treating all bidders fairly and equitably is necessary to avoid unintended consequences. For example, shopping a program too often can result in fewer bidders. Knowing when to shop your insurance and how to shop the program will result in a better outcome for everyone.

Insurance specifications are an essential tool when shopping an insurance program. The specifications inform producers bidding for the account about the contractor's coverage needs and provide underwriters with the information they will need to quote on the coverages. The specifications also make a useful checklist when evaluating competing proposals. Compiling detailed insurance specifications involves spelling out coverage and service requirements and a wish list of coverage enhancements. Information about the firm and its operations that will help the underwriter evaluate the risk is also expected, as well as anticipated changes in operations. The specifications should also spell out any specific preferences or interests the contractor has in pursuing new options, such as a different type of rating plan.