commercial insurance renewal checklist template

Commercial Insurance Coverage Annual Review and Renewal Protocol

Document Control

• Document ID: INS-RNW-001
• Version: 1.0.0
• Effective Date: [__________]
• Review Cycle: Annual (60 days prior to policy expiration)

2. Purpose & Scope

This document establishes a standardized workflow for the annual evaluation, negotiation, and binding of commercial insurance policies. It applies to all lines of coverage, including General Liability, Property, Workers' Compensation, D&O, and Cyber Liability for [Company Name].

3. Prerequisites

• Access Requirements: Administrative access to [Accounting/ERP System] and [Insurance Broker Portal].
• Materials: Current policy declarations pages, updated Statement of Values (SOV), current year financial statements, and loss runs for the past 5 years.
• Tools: [Document Management System], [Calendar Application], [Spreadsheet Software].

4. Roles & Responsibilities (RACI)

5. Step-by-Step Procedure

Phase 1: Data Gathering (90 Days Prior to Expiration)

• Compile updated Statement of Values (SOV) including new equipment, locations, or divestitures.
• Generate payroll reports by class code for Workers' Compensation.
• Aggregate gross revenue projections for the upcoming fiscal year.
• Request current loss runs from the incumbent carrier.
• Review pending or threatened litigation with [Legal Counsel].

Phase 2: Risk Profile Analysis (75 Days Prior to Expiration)

• Identify changes in [Company Name] operations (e.g., new product lines, international expansion).
• Audit current coverage limits against industry benchmarks for [Industry/Sector].
• Evaluate the adequacy of existing deductibles and self-insured retentions.
• Conduct internal gap analysis comparing current coverage to identified operational risks.

Phase 3: Broker Engagement & Market Strategy (60 Days Prior to Expiration)

• Schedule renewal strategy meeting with [Broker Name/Firm].
• Provide updated underwriting data to the broker.
• Set clear objectives for premium targets and coverage enhancements.
• Determine if a formal Request for Proposal (RFP) process is required for this cycle.

Phase 4: Review and Binding (30 Days Prior to Expiration)

• Analyze renewal quotes provided by [Broker Name/Firm].
• Compare "like-for-like" coverage against expiring policies.
• Confirm [Company Name] leadership approval of selected carriers.
• Verify Certificate of Insurance (COI) requirements for ongoing contracts.
• Sign and return formal binders and applications.
• Ensure premium invoices are scheduled for payment in [Accounting System].

6. Quality Assurance & Pro-Tips

• Pro-Tip 1: Always request "Loss Runs" at least 90 days out; carriers often delay these, and they are critical for competitive pricing.
• Pro-Tip 2: If you have experienced significant growth, ensure your revenue projections are accurate to avoid an audit premium surprise mid-term.
• Common Pitfall: Failing to disclose new business locations or operations can lead to a denial of claim coverage. Always perform a "site check" before finalizing the application.

7. FAQs

Q: How far in advance should we start the process? A: Ideally, 90 days. Starting at 60 days limits your broker's ability to market the account to multiple carriers, potentially resulting in higher premiums.

Q: What if the renewal quote shows a significant premium increase? A: Request a detailed breakdown of the increase (e.g., loss-driven, industry-wide market hardening, or increased exposure). Ask your broker for alternative deductible structures to mitigate costs.