Underwriting Public Liability Insurance

by amaus on December 29, 2011

The underwriting of public liability insurance can be a very complex and involved process.

When dealing with personal insurance such as car, home or life, we have a good idea of the types of risks that the insured party will be exposed to.

We also have a good idea of the exposure under a public liability insurance policy, however there are many different types of businesses that are covered by such policies, and each business operates in a different manner to the next.

When underwriting a public liability policy we need to consider not only the type of business, but also the way that they do their business.  For example two companies manufacturing a similar product may do so using completely different methods.  How do we know when method is safer and will expose us to less potential risk of claiming?

There are also varying levels of experience amongst business management and staff that will affect the level of risk posed by a client.  This is also something we should take into account when underwriting a public liability cover.

Obviously there are many other factors involved, and all of these need to be taken into account to ensure we are taking on acceptable risks and pricing them accordingly.

The underwriting process for public liability insurance, and any type of insurance for that matter, should really start with the insurance broker who is placing the cover.  The broker is generally in the best position to really know the business and the management team.

As underwriters we need to rely on the insurance broker to provide us not only with accurate information, but also to take some ownership of the initial underwriting process themselves in determining the level of risk posed by their current or potential clients.

It is generally accepted that any public liability underwriter dealing with specialised risks really needs to specialise in that area.  It could be the construction industry or the marine industry, but either way it is important to have an underwriter or an underwriting team that really understands the specific risks in the industry and how those risks relate to the public liability insurance being sought by the business.

Public liability insurance provides a great level of protection and comfort for many large and small Australian businesses.  By correctly underwriting these policies we can ensure the ongoing success and affordability of public liability cover.

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Underwriting Trauma Insurance

by amaus on October 4, 2011

The process of underwriting trauma insurance is very similar to underwriting most other forms of life insurance, however there are some differences worth pointing out.

As we know, trauma insurance covers major illnesses, whilst life insurance, TPD insurance and income protection all include cover for accidents.

What this means is that whilst dangerous pastimes or a hazardous occupation will definitely have an impact on the policy manufacturer’s underwriting of most types of life insurance, it can have a reduced impact on the underwriting of a trauma insurance policy.

There may be examples were a pastime or occupation can contribute to someone’s likelihood of suffering a major illness, but generally not.  This doesn’t necessarily mean that the insurer will still cover the activity, and indeed they may still place an exclusion for the activity concerned.

Family health history can also have more impact on underwriting a trauma insurance policy compared with a TPD policy.  There are many illnesses that could result in a trauma insurance claim that may not necessarily result in a TPD insurance claim.

Some types of existing injuries can also be underwritten differently for trauma insurance.  For example, an existing back complaint may result in an exclusion on a TPD insurance or income protection policy, but an exclusion of this type would generally not be required on a trauma insurance policy.

Generally speaking the policy manufacturer will go through a very similar underwriting process for all types of life insurance, including trauma insurance, but it is important to note that there can be slight differences in the process.

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