Underwriting approach
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Understanding HSB’s specialty underwriting: Our 4-step approach

Learn about the role of engineers in understanding each risk and developing tailored solutions.

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    At HSB, our Technical Risk Underwriting Solutions Team deals specifically with non-standard, high-hazard equipment breakdown risks. Each high-hazard risk is unique, and requires tailored wordings, comprehensive risk management, and a consistent underwriting philosophy to offer clients dependable coverage and peace of mind.

    To meet these specialized needs, here is how we approach underwriting risk:

    1.    Understand the risk

    The first step in risk underwriting involves assessing if it fits HSB’s risk appetite. If it does, we will work with the client to provide the most appropriate coverages, terms and pricing. This provides assurance to our clients that we take on risks that are within our capacity to manage.

    2.    Understand how the client manages risk                                                        

    It’s essential to understand how clients operate, their perspective on risk, and how they tolerate risk. A few things to consider are whether they have a robust risk management mindset, a strong maintenance program, and their approach to asset monitoring. This is done prior to developing our proposal to ensure that the solution is effective and sustainable.                                                         

    3.    Conduct engineering review to understand client’s risk profile

    HSB’s in-house engineers work with clients to understand the risk. During the engineering review stage, the most critical task involves a site visit to assess risks and exposures firsthand. This involves meeting staff, asking relevant questions, and accessing their expertise to truly gain a better understanding of how they maintain and operate the risk. It is always better to see the risk in person to truly understand the exposures.

    Our engineering team works hand-in-hand with our underwriters, offering all the technical aspects to better understand the exposure. This helps create coverages based on the engineering facts.

    4.    Develop customized solutions

    Each client is unique, with their own specific risks and exposures. Therefore, we offer bespoke and customized solutions tailored to the individual needs of each client.

    We take a surgical approach to our underwriting to ensure we meet the needs of our clients while maintaining our underwriting guidelines. This ensures we can find win/win solutions and create positive outcomes for all parties involved.

    Our underwriters keep an open mind, thinking outside the box to help our clients truly find the solutions they need.

    This article is for informational purposes only and is not intended to convey or constitute legal advice. HSB makes no warranties or representations as to the accuracy or completeness of the content herein. Under no circumstances shall HSB or any party involved in creating or delivering this article be liable to you for any loss or damage that results from the use of the information contained herein. Except as otherwise expressly permitted by HSB in writing, no portion of this article may be reproduced, copied, or distributed in any way. This article does not modify or invalidate any of the provisions, exclusions, terms or conditions of the applicable policy and endorsements. For specific terms and conditions, please refer to the applicable insurance form. Posted on June, 2024

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