E&S Submission Checklist: What to Send Your Wholesaler
In the excess and surplus lines market, the submission is the sales pitch. Insurers reviewing a non-standard risk need to understand the operation, the exposure and the history before they can consider it. An incomplete submission usually means questions back and forth, and sometimes a pass. A complete one gives the risk its fairest look.
This checklist covers what Sterling Insurance Services asks retail agents to include when submitting a commercial risk. Line-specific items are at the end.
The core submission
1. Completed applications
- •ACORD applications for each line requested (for example, ACORD 125 plus the line-specific form), fully completed and signed where required
- •Insurer or class supplements for the type of operation, such as contractor, restaurant, or habitational supplements, when applicable
Leave no blanks. "N/A" or "none" tells the reader the question was considered. A blank leaves them wondering.
2. Loss history
- •Currently valued loss runs for the past five years for each line, from each prior insurer. "Currently valued" generally means dated within the last 90 days. Check whether the insurer you are targeting asks for something different.
- •If the insured had no coverage for part of that period, or is a new venture, explain why in writing.
- •For significant claims, include a short description of what happened and what changed afterward.
3. Current coverage information
- •Declarations pages for current or expiring policies, with limits, deductibles and premium
- •Expiration date and the date you need a quote. Send submissions with as much lead time before expiration as you can.
- •If the current insurer is non-renewing, cancelling or declined the risk, say so and give the reason if known
4. Exposure information
- •Revenue or gross receipts, with the current-year estimate and prior years
- •Payroll by class, where relevant
- •Subcontracted costs for contractors
- •Locations, square footage and construction details for property
- •Vehicle schedules and driver lists for auto
5. A risk narrative
This is the most overlooked part of a submission and often the most useful. In a few paragraphs, cover:
- •What the business does, in plain terms, and what it does not do
- •How long it has operated and the owners' experience
- •Why the risk needs a specialty or surplus lines market
- •Risk controls in place, such as safety programs, contracts, certificates from subcontractors, and training
- •Anything unusual an insurer would want explained up front
6. Supporting documents
- •Website, photos, or inspection reports where relevant
- •Sample contracts, including indemnity and insurance requirements the insured must meet
- •Safety manuals or written programs, if they exist
Line-specific add-ons
Contractors general liability: description of work by percentage (residential vs. commercial, new vs. remodel), any wrap-up or project-specific requirements, subcontractor agreements and certificate practices, and maximum height or depth of work.
Commercial auto and trucking: vehicle schedule with VINs, driver list with license information, operating radius, commodities hauled, motor vehicle records where available, and any regulatory authority numbers.
Liquor liability and hospitality: liquor sales as a share of total sales, hours of operation, entertainment, security practices and training.
Professional liability: description of services, revenue by service type, contracts and engagement-letter practices, and any prior claims or known circumstances.
Commercial property and builders risk: construction, occupancy, protection and exposure details, replacement-cost values, and project budgets and timelines for builders risk.
Surplus lines items to keep in your file
Surplus lines placements carry their own paperwork. Depending on the state, this can include documentation of a search of the admitted market, signed disclosure forms the insured must receive, and surplus lines tax and filing responsibilities. Requirements vary by state. In California, see the California Department of Insurance and the Surplus Line Association of California for current rules. This checklist is general information, not legal or tax advice.
How Sterling handles your submission
Once your submission is complete, our team reviews it and approaches markets that may consider the risk. Quotes come from insurers and are subject to their underwriting review. A submission is not an application for coverage and does not bind coverage. No coverage is in force until binding is confirmed in writing.
Frequently asked questions
Some coverage placed by Sterling Insurance Services LLC is written by nonadmitted ("surplus lines") insurers. Nonadmitted insurers are not licensed by the state where the insured is located and are not subject to that state's financial solvency regulation and enforcement. They do not participate in state insurance guarantee funds, including the California Insurance Guarantee Association, so those funds will not pay claims if the insurer becomes insolvent. Surplus lines placements are made only where permitted by law, after any required diligent search of admitted insurers, and are subject to surplus lines taxes, stamping fees, and state filing requirements. Required state notices (for example, the California notice under Insurance Code §1764.1) are provided with applications and policies.
Sterling Insurance Services LLC is a wholesale insurance brokerage. We work only with licensed insurance agents and brokers and do not sell insurance directly to the public. If you are a business owner or consumer looking for coverage, please contact a licensed retail insurance agent or broker.