What Slows Down Manufacturing Submissions - and How to Fix It

Common Bottlenecks in Manufacturing Insurance Submissions

Manufacturing insurance submissions are often slowed by preventable issues that agencies can address before sending a risk to underwriting. These include missing documentation, unclear operational descriptions, and incomplete payroll data. Identifying and correcting these issues upfront can significantly speed up the placement process and reduce back-and-forth communication with carriers.

Manufacturing businesses operate under a range of risk profiles, from heavy machinery use to material handling and assembly lines. The carriers on the panel expect clarity on the nature of the work, the exposure, and the steps the business has taken to mitigate risk. Failing to provide this information slows down the submission and may result in a declined placement.

Fix: Before submitting a manufacturing risk, ensure the submission includes a detailed operational description, a complete payroll split, and a clear outline of the safety measures in place. These details help the underwriter quickly assess the risk and avoid unnecessary delays.

Missing or Incomplete Documentation

One of the most frequent reasons manufacturing submissions get delayed is missing or incomplete documentation. This includes incomplete ACORD forms, missing payroll splits, or unclear descriptions of the business operations. Carriers rely on this information to accurately assess risk and determine pricing and coverage.

For example, a submission may lack a breakdown of how many employees work in high-risk areas of the plant or fail to disclose the use of hazardous materials. This forces the underwriter to request additional information, which can add days or even weeks to the submission process.

Fix: Always include the most recent payroll report, a detailed operational description, and any relevant loss history. If the business has safety programs or certifications, make sure to include those as well. These documents give the underwriter a complete picture of the risk and help them make a faster decision.

Vague Operational Descriptions

Manufacturing businesses vary widely in their operations, from light assembly to heavy fabrication. A vague operational description that reads like a generic template can confuse underwriters and delay the submission. Carriers need to understand the specific activities, equipment, and materials used in the business to accurately assess risk.

For example, a submission that simply says “manufacturing of metal products” without specifying whether the business is cutting, welding, stamping, or assembling metal parts can lead to a request for more information. Underwriters need to know the specific processes and any associated risks to determine the appropriate class code and price.

Fix: Use a clear and concise description that outlines the exact nature of the manufacturing process. Mention the types of equipment used, the materials handled, and the steps involved in the production process. This level of detail helps the underwriters quickly evaluate the risk and avoid delays.

Incomplete Payroll Splits

Payroll splits are essential for manufacturing submissions, as they help underwriters determine the correct exposure basis and rate the policy accurately. An incomplete payroll split that doesn’t break down employees by job class or activity can lead to delays and may even result in an incorrect quote.

For example, a submission that groups all employees under one class without distinguishing between machine operators, welders, and administrative staff can lead to an inaccurate classification. This not only delays the submission but can also result in a higher-than-necessary premium.

Fix: Provide a detailed payroll split that categorizes employees by job function and activity. If the business has seasonal workers or part-time employees, make sure to include those as well. A complete payroll split helps the underwriter assign the correct class code and rate the policy accurately, reducing the chance of delays and ensuring a more accurate quote.

Failure to Disclose Safety Measures

Manufacturing operations often involve high-risk activities, and underwriters are looking for evidence that the business has implemented safety measures to mitigate those risks. Failing to disclose these measures can lead to a higher premium or even a declined submission.

For example, a business that uses automated safety systems, regular employee training, or safety certifications should include these in the submission. These details show the underwriter that the business is proactive about safety, which can lead to more favorable terms and a faster approval process.

Fix: Include a clear outline of the safety programs, certifications, and training that the business has in place. Mention any automated safety systems, regular inspections, or employee training programs. A documented safety programme is one of the few things a submission can carry that argues for the risk rather than merely describing it.

Lack of Loss History

Loss history is a critical component of any manufacturing insurance submission. A submission that lacks this information or provides incomplete data can lead to delays and may even result in a declined placement. Underwriters use loss history to assess the business’s risk profile and determine the appropriate pricing.

For example, a submission that doesn’t include the most recent three years of loss runs can lead to a request for additional information. This not only delays the submission but also increases the chance of an incorrect quote.

Fix: Always include the most recent three years of loss history in the submission. If the business has a clean loss history, make sure to highlight that as well. This information helps the underwriter assess the risk more accurately and can lead to more favorable terms.

Using the Right Tools to Speed Up Submissions

To streamline the submission process, agencies can leverage tools that automate data collection and document integration. Platforms like Cennairus help agencies gather and structure the information for manufacturing insurance submissions before sending the risk to underwriting.

On Cennairus, a single application reaches several carriers and specialty markets; some are connected by API and others are worked by email or a program desk. By automating ACORD forms and loss run processing, the platform reduces the time and effort required to prepare and submit a risk.

Agencies that want to streamline their submission process and improve their placement success can join Cennairus today and start leveraging these tools for their manufacturing insurance submissions.