When evaluating risk, underwriters approach your business from two different perspectives.
First, is the application – the nuts and bolts of who you are. This is relatively straightforward and the easy piece of the puzzle. It’s things like revenue, equipment values and loss experience. It’s things than can easily be assigned a value. These factors are definitely important, but not very compelling.
Second, is the story - WHO you are and HOW you do things. Your story may not be something that is easily quantified, but most underwriters would agree it’s the more important piece of the puzzle.
Does your story involve active ownership and management? Do those leaders promote a strong culture from the top down?
If so, you should have an operation full of engaged employees strengthening that message, which in turn, strengthens your reputation in your particular industry.
That's a good story to tell!
Maybe you are a company that actively trains their employees to allow them the best opportunity to succeed. Perhaps a key element of your story is adapting to new technologies and finding way to be proactive in your approach to managing risk.
If so, you are probably recognized as an industry leader – somebody that employees and business partners want to be associated with.
Another good story to tell!
The story matters. Good underwriters want to do business with other good companies.
If your broker is just working on the first piece of the puzzle (the application), you're likely missing out on an opportunity to expand your options or improve your pricing.
So again, what story are you telling an underwriter? Is it one they will want to hear?
Photo via edududas at sxc.hu