Underwriting
What Information Underwriters Really Need
Completing every field on an ACORD form is the minimum — not the standard. Underwriters need more than a filled-out form to quote confidently on complex risks. They need context, consistency, and clarity about the specific nature of the risk. Here is what underwriters actually need, beyond what the ACORD form requires.
What underwriters need that is not on the ACORD form
A specific description of what the business does — not just the class code
The ACORD 126 description of operations field exists precisely for this. But most agents fill it with the classification code description ("General Contractor") rather than a description of what this specific business does. Underwriters use the description of operations to confirm that the class code is appropriate and to identify any operations that require additional underwriting attention. "Residential remodeling — kitchens and bathrooms only, no structural work, licensed and bonded in Colorado, no subcontractors used for framing or electrical" is a description. "General contractor" is a category.
Context around losses — not just the loss run
A loss run shows amounts, dates, and status. It does not explain why losses occurred or what the insured has done since. An underwriter who sees three slip-and-fall claims over five years without explanation assumes the premises are dangerous. An underwriter who sees the same three losses with a brief note explaining that two occurred before the insured installed proper exterior lighting and one was a fraudulent claim that was denied — has context to make an underwriting decision. The agent's narrative around adverse information changes how underwriters evaluate it.
Revenue and payroll figures that are consistent and explained
Revenue on the ACORD 125 should match the premium basis revenue on the ACORD 126. Payroll on the ACORD 130 should be a plausible figure for the business size relative to the revenue. When these figures are inconsistent — revenue of $1.5M but payroll of $40K for a labor-intensive business — underwriters notice and send an AI request. Explain material inconsistencies in the cover note rather than leaving them for the underwriter to question.
The reason the account is in the market
When a submission comes in, underwriters ask: why is this account shopping? If the reason is benign (renewal market check, prior carrier exited the class, prior carrier raised rates significantly), saying so signals to the underwriter that this is not an adverse risk. If the prior carrier non-renewed, the underwriter will find out — better to disclose it proactively with context than have the underwriter discover it and wonder why it was not mentioned.
The submission cover note: where context lives
The submission cover note is the place to provide context that does not fit on an ACORD form: why the account is in the market, any adverse history with explanation, why this risk is a good account despite any concerning numbers, and what you are asking the underwriter to do (quote at the requested limits, authorize a non-standard endorsement, provide an indication). Agents who write good cover notes build relationships with underwriters that translate to faster responses, better terms, and more capacity on borderline risks.
Build submissions that give underwriters what they really need
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