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What is a hard-to-place insurance risk?
AI Doc Summarizer Doc Summary

A hard-to-place insurance risk is an insurance exposure that cannot be readily placed with standard insurers.

This does not necessarily mean the business is uninsurable.

It may mean the risk requires:

  • A specialist insurer.
  • A different policy structure.
  • Additional underwriting information.
  • Restricted cover.
  • Higher excesses.
  • Different risk management.
  • Access to specialist or overseas markets.

What can make a risk difficult to insure? #

Examples can include:

  • Unusual business activities.
  • High-risk work.
  • Significant previous claims.
  • Hazardous locations.
  • Complex contractual exposures.
  • Large or unusual property risks.
  • Difficult occupations.
  • Emerging technologies.
  • Overseas operations.
  • Activities outside standard insurer appetite.

Does a previous insurer declining the risk mean nobody will insure it? #

No.

Insurers have different underwriting appetites.

A risk that falls outside one insurer’s appetite may still be considered by another insurer or specialist market.

Why does specialist broking matter? #

Hard-to-place risks often require a detailed explanation of:

  • What the business actually does.
  • How the exposure is controlled.
  • Previous claims.
  • Qualifications and experience.
  • Risk management procedures.
  • Why the risk differs from what an insurer might initially assume.

Webber Insurance can approach specialist markets where a standard insurance placement is not suitable.

General Advice Warning: The information on this page is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate for you and seek professional advice before making any decisions. For tailored advice, please contact Webber Insurance Services.