What does hard-to-place insurance mean?

A business may be described as hard to place when its operations, property, products, claims history or other underwriting characteristics fall outside the appetite of standard insurers. It does not mean insurance is unavailable, but it can mean fewer markets, additional information requirements, higher deductibles, narrower terms or different pricing.

Why can a manufacturer be difficult to insure?

Insurers may look closely at fire load, hot work, combustible raw materials, machinery, dust, chemicals, heat processes, extraction systems, housekeeping, fire protection and business interruption dependencies. The combination of factors matters more than any single feature.

Why are imported products important for liability insurance?

Importers may have products liability exposure because they are part of the Australian supply chain. Insurers commonly consider the type of product, end use, countries of manufacture, quality controls, contractual arrangements, claims history, turnover and any higher-hazard product categories.

What is EPS or combustible-panel property insurance?

Expanded polystyrene and some other insulated or composite panel systems can materially influence insurer appetite for property risks. Underwriters may request details about panel type, percentage of construction, age, condition, fire protection, compartmentation and risk-management controls.

Can a business obtain insurance after a large claim or non-renewal?

Sometimes. The circumstances of the loss, corrective action, current controls and the broader risk profile are important. A detailed submission can help insurers understand what happened and whether the exposure has changed.

Why does underwriting information matter?

Complex risks are easier for insurers to assess when the submission clearly explains the business, values, activities, premises, products, controls, claims and requested insurance. Incomplete or inconsistent information can make an already difficult placement harder.

What is business interruption insurance?

Business interruption insurance can respond to insured financial loss following insured damage, subject to policy terms, limits, deductibles, indemnity periods and exclusions. The appropriate basis of cover depends on the business and should be considered with the associated property insurance.

What should I provide when seeking a hard-to-place quotation?

Typical information may include business activities, turnover, wages, subcontractor payments, property values, stock, construction details, fire protection, products, overseas exposures, claims history and current insurance. The exact information depends on the class of insurance and the risk.

This information is general insurance information only. Policy coverage depends on the wording, schedule, endorsements, limits, deductibles and exclusions applying to the particular policy.