Short answer
Many owners say they can’t find insurance for my business, and the cause is usually one of three things. The insurer’s appetite does not list your type of work. The person quoting you cannot explain it to an underwriter. The premium is also too small for a generalist to spend time on. None of these mean you are uninsurable. They usually mean you approached the wrong door. Whether a policy responds depends on its wording and the facts.
Reason 1: Your work is not on the insurer’s list
Insurers publish appetite guides and class codes. If your service is not on the list, an online system or a busy underwriter often says no by default.
Work like 3D modeling for machine control or drone topos for site contractors rarely appears on those lists. The closest match may be a class the insurer does not want, such as surveying or construction. One owner told us, “I got turned down a lot. Across the board.”
Reason 2: Nobody could explain the work
An underwriter only sees what is on the application and in the submission email. A one-line description of unfamiliar work often gets declined or priced as the worst case.
Owners often cannot describe their work in insurance terms, and agents who do not know the field cannot translate it. As one owner put it, “It was hard to articulate exactly what we do.” Our business description article shows how to write a plain description that helps an underwriter see the work.
Reason 3: The policy is too small to be worth the effort
Placing a niche policy can take as much work as placing a large one. Many agencies have minimums or prioritize bigger accounts.
Some insurers also have minimum premiums. Others will not write a firm below a certain revenue size or with few years in business. One owner said their policy “was such a small policy that it just wasn’t worth it for people.”
Reason 4: You may have knocked on the wrong door
Personal lines agents, bank-affiliated agencies and general business agents may not have access to design or technology E&O markets. Professional liability for design and technical work is often written by a smaller group of specialty insurers, and some of them are surplus lines.
Our admitted vs. non-admitted insurance article explains the difference.
Want this looked at for your firm?Tell us what your firm does. A specialist reviews it and comes back with options.
Get a Quote →What happens after a few declines
After several declines, many owners buy whatever an online form will bind. It produces a certificate, but it may not cover the work they actually do.
Years later, nobody has looked at it again because it auto-renews and the price is low. One firm we reviewed had a policy that excluded the kind of work the owner does every day. Our machine control modeling insurance article tells that story, and the designated professional services exclusion article shows how to spot the wording.
How to get a better answer when you can’t find insurance for your business
Look for an agency that works with your kind of firm every day. Ask which of their clients do work like yours.
Bring a few things to the first conversation:
- A plain description of your work
- The percent of revenue for each service
- A sample deliverable
- A typical contract
- Your current policy, plus loss runs if you have any
Our past claims and loss runs article explains what loss runs are and when to request them. Expect questions, too. A specialist who asks a lot of questions is usually a good sign.
Questions to ask a new agent
Use these questions when you can’t find insurance for your business or want a second opinion:
- How many firms like mine do you insure?
- Which insurers write my kind of work, and are they admitted or surplus lines?
- What would make an underwriter decline me, and how do we address it up front?
General education, not legal advice. Hardcover is an insurance agency, not a law firm.
What we see at Hardcover
A solo modeling firm told us they were turned down by almost everyone they approached when they started out. The work was hard to explain, and the policy was small. They eventually bought online and kept that policy for years without anyone reviewing it. When we read it, the policy excluded the kind of work they do every day.
Does being declined hurt my chances with other insurers?
Applications often ask whether you have been declined or cancelled. A decline because your work was outside appetite is usually easy to explain. Be honest on the application.
Is a surplus lines policy worse than an admitted one?
Not necessarily. Many specialty professional liability policies are surplus lines. There are differences in taxes, fees and state protections.
How long does it take to place a niche policy?
It depends on the firm and the insurers. A complete submission is the biggest thing that speeds it up.
Is it worth the time if my premium is small?
The premium is small, but a claim can be large. The goal is a policy that responds when you need it.
General information, not legal advice.
Your numberWant a real number for your firm?
Tell us what your firm does and your revenue. We will come back with what carriers would actually charge.
