Short answer
Sometimes the better move is to stay with your current carrier rather than switch carriers. Past work such as amusement parks, ziplines or recreational projects can make some carriers hesitate.
Others handle that history with more flexibility. Marketing a hard-to-place account can produce higher quotes or declinations that follow you into future applications. Whether staying put makes sense depends on the specific account, and it is a judgment call rather than a rule.
What carrier appetite means
Appetite describes the types of risks a carrier wants to insure. Each carrier sets its own view of project types, firm sizes and claims history. Two carriers can look at the same architecture or engineering firm and reach very different conclusions.
That is why an unusual project on an application can matter. One underwriter may see a manageable exposure, while another may decline to quote at all. Appetite also shifts over time, so a carrier’s view today may differ from its view a few years ago.
Which project types raise flags
Recreation and amusement work tends to draw extra attention. Amusement parks, ziplines and similar attractions are common examples. Underwriters often see these projects as higher hazard because the public uses them, and injuries can be serious.
Other project types can draw similar scrutiny, depending on the carrier. A firm with this kind of history may find its options narrower than a firm with a typical project mix.
Why a broker may advise you not to switch carriers
If your current carrier already understands your project history and treats it reasonably, that relationship has value. A broker who knows which carriers are flexible may prefer not to rock the boat.
Shopping the account carries real risks:
- Some carriers may react poorly to the project history and quote higher or decline.
- Some applications ask whether the firm has been declined or non-renewed.
- A declination you did not need can then follow you into later applications.
For a firm with a typical project mix, shopping the account is often low risk and can be worthwhile. For a firm with unusual history, the same step can leave you worse off than before.
Real-world example
A design firm completed several recreational projects years ago, including a zipline course. Its current carrier knows this history and has renewed the firm each year at a steady price.
The owner considers moving to save money. A broker may point out that other carriers could see the recreational work and decline. Those declinations would then need to be disclosed on future applications that ask. In that case, the broker might suggest staying put and revisiting the question later.
How to describe unusual projects on an application
Never leave projects off an application to avoid a hard conversation. Misrepresentation can put coverage at risk, including a claim being denied. The goal is to find the carrier that fits your history, not to hide it.
Describe each project accurately and include the firm’s actual role. If the firm only handled a small portion of a larger project, the application should say so. A broker can help present the facts clearly so the underwriter sees the full picture. The reasoning behind that is covered in why your professional liability application matters at renewal.
What to check before you switch carriers
Before deciding to switch carriers, review:
- Whether your current carrier has renewed you consistently with your project history disclosed.
- Whether any new quote reflects the same coverage terms, limits and deductible structure as your current policy.
- Whether your applications have asked about prior declinations or non-renewals.
- Whether a broker familiar with your project types has recommended marketing the account.
Comparing quotes properly matters here. How to compare two architects and engineers professional liability quotes covers what to look at beyond price.
Hardcover insight
A lower quote does not always mean a better outcome. When a firm has project history that spooks some carriers, the relationship with a flexible carrier can be worth more than a small premium difference. Brokers who place A&E accounts regularly tend to know which carriers handle which project types. That knowledge often matters more than the number of quotes collected.
Related questions
Will a declination affect my future insurance applications?
It can. Some applications ask whether a firm has been declined or non-renewed. Answering yes may lead an underwriter to ask follow-up questions.
Should I always stay with my current carrier?
No. Staying put is a judgment call for a specific account. Many firms benefit from shopping their coverage, especially when their project history is routine.
Can I leave an unusual project off my application?
No. Leaving out projects can be treated as misrepresentation and may put coverage at risk. The better approach is to describe the work accurately and find a carrier that fits.
What does appetite mean in professional liability insurance?
Appetite refers to the types of risks a carrier prefers to insure. It varies by carrier and can change over time.