To remarket (shop) an inherited insurance program, pick one broker to represent you, give that broker a complete and accurate file on the business you now own, and let it take that file to a short list of carriers. Then compare the quotes line by line against what you have. Much of the outcome is decided before any carrier sees the file: clean exposure data, current loss runs and a clear story about what changed under new ownership. This guide is for buyers who have reviewed the seller's policies and decided to test the market, usually ahead of the first renewal.
The short answer
- Pick one broker first. Carriers generally work an account through one broker at a time, so two brokers chasing the same carriers can block each other.
- Start about 90 to 120 days before renewal; a complex or hard-to-place account needs the longer end.
- A strong submission has applications, five years of current loss runs, exposure data you trust and a short narrative about the new owner and what changed.
- Approach carriers that know your type of business, include the incumbent carrier, and use surplus lines insurers (specialty insurers for risks standard carriers decline) only where the standard market will not fit.
- Compare forms, limits, exclusions, deductibles, audit terms and the carrier, not just price, and nothing changes until a carrier binds coverage.
What does it mean to remarket (shop) your insurance?
Remarketing means asking other insurance carriers to quote the coverage you already have, so you can see whether the business you bought can get better terms, a better price or both. It comes after a review. A business insurance review tells you what the business needs and where the inherited policies fall short; remarketing goes and gets the alternatives.
The first decision is who represents you. Carriers generally accept a given account from only one broker at a time, and the first broker to submit often reserves that carrier for the account (brokers call this "clearing" or "blocking" a market). If the seller's broker, a new broker and a third broker all approach the same carriers, you can end up with fewer quotes, not more. Decide early, and if the broker you want needs access to carriers that already write your policies, a broker of record letter is how that is handled.
You do not have to remarket everything at once. Many owners start with the lines that matter most to their cash flow or contracts, such as workers' comp, auto or general liability, and leave smaller policies for later.
When should you start, and how long does it take?
Underwriters need time to read the file, ask questions and get internal approvals. Starting late can leave you with little more than the incumbent's renewal offer. Whether to move at renewal or mid-term is its own question; see when to remarket.
| Days before renewal | Step |
|---|---|
| 120 | Choose your broker, request current loss runs from every carrier for the last five years, gather policies, contracts and payroll data |
| 100 | Fix the data, build applications and exposure schedules, write the new-owner narrative |
| 90 | Submissions go to the selected carriers; ask the incumbent for renewal terms |
| 60 | Underwriter questions, inspections, first quotes arrive |
| 30 | Side-by-side comparison, negotiation, decision; review subjectivities (conditions the carrier sets before or after binding) |
| 0 to 10 | Confirm the bind in writing before the old policy expires, complete subjectivities and issue new certificates. Cancel nothing until then. |
A quote is not coverage. Coverage starts only when a carrier binds it, usually confirmed by a binder or the policy itself.
What goes into a strong submission?
Underwriters price what they can see. Missing or stale information usually leads to a decline, a higher price or a cautious estimate that you pay for at audit.
| Item | What it shows the underwriter | New owner tip |
|---|---|---|
| Applications for each line | Who you are, what you do, where and how much | Use the industry's standard ACORD forms or the carrier's own; answer every question accurately |
| Loss runs for five years | Claims history, open claims and reserves | Ask for runs valued within the last 90 days, from every carrier, including the seller's prior carriers. See loss runs |
| Payroll by class code and state | Workers' comp and often general liability exposure | Use your forecast as owner, not the seller's old estimate |
| Revenue by type of work | Which operations drive the risk | Split out any sideline the seller ran, even if small |
| Vehicle and driver lists | Auto exposure and driver quality | Remove sold vehicles and departed drivers before the file goes out |
| Property schedule | Buildings, equipment and values | Use replacement cost values, not the purchase price allocation |
| Experience mod worksheet (the mod is the factor that adjusts workers' comp premium for past claims) | Workers' comp claims history and rating | Check it for errors first; see checking your mod |
| Key contracts and certificate requirements | Limits and endorsements you must carry | Quotes that miss a contract requirement are not real options |
| Safety, driver, HR and cyber controls | How losses are prevented | Put written programs in the file, not just verbal claims |
| Current policies and declarations pages | What you have today | Lets every carrier quote the same coverage |
For a fuller list, see documents for an insurance review.
How do you tell the new-owner story?
Loss history and the workers' comp experience mod usually follow the business to the new owner, so underwriters will still see the seller's record. If the ownership change has not yet been reported to the rating organization, tell underwriters, because the mod used in the quote may change; see the new owner review of workers' comp. What they also weigh is what happens next. A one-page narrative, attached to the submission, helps them price the business you run rather than the one the seller ran.
- Who you are. Your background, your investors or board, and the management team, including anyone you kept from the seller.
- What changed. A safety manager, driver standards, written hiring practices, new IT controls, a sideline you stopped.
- What did not change. Same crews, same customers, same locations, if true. Continuity reassures underwriters.
- Explanations for large losses. What happened, whether it is closed, and what has been done so it does not repeat.
- Where you are going. Growth plans, new services or add-on acquisitions, so the quote fits the coming year.
Keep it factual. Misstatements on an application can put coverage at risk later. For what underwriters look for in more depth, see what underwriters want to see from a new owner.
Which markets should you approach?
More carriers is not always better. A focused list of carriers that write your class well usually produces better quotes than a broad blast that many underwriters skim and decline.
- The incumbent carrier. Ask for renewal terms early. The incumbent knows the account and may compete once it sees a well-prepared file.
- Standard (admitted) carriers with appetite for your industry and size, including regional carriers.
- Industry programs built for a single class of business, often through specialist brokers or managing general agents (specialist firms that underwrite for carriers).
- Excess and surplus lines insurers for exposures the standard market will not take, usually reached through wholesale brokers. If the seller's account sits there today, it is worth asking whether it still needs to; see admitted vs surplus lines.
- State funds or assigned risk plans (the plans that cover employers no carrier will take voluntarily) for workers' comp in some states, and the state fund in North Dakota, Ohio, Washington and Wyoming, where private carriers do not write it.
Ask your broker which carriers will see the file and why. You should know before submissions go out.
How do you compare quotes apples to apples?
| Item | What to check |
|---|---|
| Named insured | Your legal entities, holding company and any DBAs are listed correctly |
| Limits and sublimits | Per occurrence, aggregate, and any sublimits buried in endorsements |
| Deductibles and retentions (the amount you pay before the policy does) | Amount, and whether defense costs count toward it |
| Coverage trigger | Occurrence or claims-made. For claims-made lines, confirm the new quote keeps your expiring retroactive date (the earliest date of work or acts covered). A new retro date at inception leaves past acts uncovered unless you buy a tail (extended reporting period) from the old carrier. Also check any prior or pending litigation date (claims or suits that began before it are excluded) and any warranty letter (a signed statement that you know of no likely claims) the new carrier asks you to sign. |
| Key endorsements | Additional insured status (your customer is covered too), waiver of subrogation (the carrier will not sue your customer to recover a claim) and primary and noncontributory wording (your policy pays first), as your contracts require |
| Exclusions | Any new exclusion on a classification, operation or location you rely on |
| Audit basis and rates | Rates per unit of payroll or sales, and minimum premium |
| Taxes, fees and minimum earned premium | Surplus lines taxes and fees, policy fees, and how much premium the carrier keeps if you cancel early |
| The carrier | Financial strength rating, admitted or surplus lines status, claims service |
| Subjectivities and payment terms | Conditions to complete, deposit and installment options |
A hypothetical example. A buyer remarkets a contractor's general liability policy. Quote A is $10,000 a year lower than Quote B. On a side-by-side read, Quote A adds an exclusion for a type of work that makes up 15% of revenue and drops primary and noncontributory wording that two key customers require. Quote B matches the expiring coverage. Quote A is only cheaper because it covers less. The numbers are illustrative; the lesson is that a price gap often hides a coverage gap.
What should you expect from the process?
- Declines are normal. Some carriers will pass because of class, size or loss history. A short reason from each helps your next renewal.
- Price may go up. If the seller was underinsured or the estimates were stale, accurate data can raise the premium even as coverage improves. No broker can promise savings; see was the seller underinsured.
- Subjectivities follow. Inspections, signed applications, loss control visits or proof of controls are common conditions.
- Claims-made lines need extra care. Moving them can leave past acts uncovered if the retroactive date is not carried over; see prior acts and tail coverage after an acquisition.
- Binding is a step, not a formality. Confirm the bind in writing, line up effective dates and times so nothing lapses, then let old policies expire. Cancelling an old policy mid-term may trigger a short-rate penalty (the carrier refunds less than the unused share of the premium), depending on the policy, filings and state law.
- Tell the people who rely on your coverage. Your lender, landlord and certificate holders need updated certificates. See certificate tracking.
If you would like help preparing the file, Morrow can review the inherited program and request quotes where it makes sense.
Keep reading
- When to Remarket Business Insurance: Mid-Term or at Renewal?
- What Underwriters Want to See From a New Business Owner
- Broker of Record Letters: Switching Brokers Without Switching Policies
- Admitted vs Surplus Lines: Is the Seller's Account in the Wrong Market?
- How to Read Loss Runs After You Buy a Business
- All guides for new business owners
Frequently asked questions
Should I tell new carriers what I pay today?
Brokers differ on this. Sharing the expiring premium can anchor quotes near it, while withholding it can waste time on quotes far above it. Brokers commonly share the current coverage so carriers quote the same terms, and decide case by case on price.
Can I use two brokers to get more quotes?
Usually not on the same carriers. Carriers generally accept an account from one broker at a time, so two brokers can block each other. If you want two opinions, split the carriers between them clearly in writing.
How many quotes should I expect?
It depends on your class, size and loss history. A well-prepared, attractive account may draw several quotes for each line, while a hard-to-place one may get one or two. A focused list often works better than a long one.
Will shopping around upset my current carrier or broker?
Not usually. Carriers and brokers expect accounts to be shopped, especially after a change in ownership. Ask the incumbent for renewal terms early, tell the current broker how you plan to run the process, and treat the incumbent as one of the competitors.
Do I need the seller's help to remarket?
It helps. The seller or its broker may hold prior loss runs, applications and claims explanations. Ask for them as part of the transition, ideally in the purchase agreement or transition services agreement; ask deal counsel how to word it.
References
- NCCI: ABCs of Experience Rating
- ISO: Common Policy Conditions, IL 00 17 11 98 (copy hosted by RSUI)
- IRMI: Short-rate cancellation definition
Just bought a business? Get your insurance reviewed.
Send Morrow the declarations pages, loss runs and key contracts you inherited. Morrow can review them against the business you bought, flag gaps and request quotes where it makes sense. Any new terms depend on carrier underwriting.
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This article is general information, not legal, tax or financial advice, and not a coverage determination. Coverage depends on the actual policy wording, carrier underwriting, your purchase agreement and your contracts. Ask your attorney and accountant about deal and legal questions.