The Underwriting Process

Our underwriters are skilled people. They assess the acceptability of a "risk" and set terms and conditions of coverage. This assessment is based on the information provided in an Application Form as well as by outside sources (e.g. Audited financial reports; special auditors' reports to management on internal controls and operations; credit reports; etc.). With this information the underwriter will set the terms and conditions of coverage, including the premium to be charged..

A fully completed and signed Application Form provides essential basic information. Audited financial statements give an idea of the fiscal state of the operation and a measure of its success. This is used to assess the potential risk.

Important Underwriting Considerations

Amounts of Coverage, or "Limits" :
There is no precise rule for how much coverage should be carried. It should be a realistic reflection of the maximum that an organization could anticipate losing. How this is determined will involve an assessment of a variety of factors. It includes the size of the operation and the vulnerability of assets to theft and loss.

Employee dishonesty often occurs over a long period. Small but frequent acts of embezzlement can add up to a large loss. A hold-up or burglary is a single event and often the limit of coverage required can be controlled by fixing a limit to the amount of money or valuables usually kept on hand.

Deductible :
The deductible amount is negotiated with the underwriter and is based on the relative size and nature of the organization.