Renewing your insurance in today’s market is more difficult and time-consuming than ever before. Due to the hard market, COVID-19 impacts and significant catastrophic losses in the past several years, insurers are imposing more coverage restrictions. Preparing responses in advance to questions underwriters are asking about COVID-19’s impact will put your organization in the best position to successfully negotiate your insurance renewal.

1. PROVIDED BY CBIZ INSURANCE SERVICES, INC.
R
enewing insurance in today’s market is more
difficult and time-consuming than ever before.
The hard market has developed after several
years of significant catastrophic losses. That situation
has now been exacerbated by the impact of COVID-19,
leading insurers to impose even more coverage
restrictions. In general, stricter policy provisions include
adding sublimits, changing deductibles, enacting policy
safeguard limitations and more.
Following are the top ten questions underwriters are
asking financial institutions in this mid- and post-COVID
environment. Preparing responses in advance will help
put your financial institution in the best position to
successfully negotiate your insurance renewal.
Key Financial Institution Underwriter Questions
1. What is your 2020 financial performance to
plan – YTD and projected year-end?
2. Capital plans – Is there a capital raise in
your future?
3. What has been COVID-19’s impact on your
operations? Work from home, COVID cases in
market, reopening, furloughs and layoffs, etc.
Banking
Financial Services (Continued on page 2)
UnderwriterQuestionsto
ExpectPost-COVID-19
1-800-ASK-CBIZ • cbiz.com/banking BizTipsVideos AUGUST 2020CBIZ @CBZ

2. 4. Have you strengthened cybersecurity measures
to secure remote operations?
5. Industry sector exposure? Energy/oil/gas/
energy, transportation, retail trade, hospitality,
recreation, etc.
6. What percentage of total loans was deferred or
restructured?
7. Bank stress testing – Have there been any
recent updates and what are the primary
assumptions?
8. How many PPP loans did the bank originate?
What was the dollar amount?
9. Regarding COVID-19 specifically, what is your
communication plan with your shareholders?
10. Most recent and next regulatory exam dates –
any criticisms?
As business advisors and lenders, we suspect you will
also appreciate the following preview of the detailed
questions underwriters will be asking your customers.
General Business Customers Underwriter
Questions
Financial Activity Operations
■ What is your 2020 financial performance to plan –
YTD and projected year-end?
■ How has COVID-19 affected your operations?
■ Have you experienced or do you expect to
experience disruptions to your supply chain?
■ What changes have you made to your onsite
processes?
■ Have you strengthened cybersecurity measures to
secure remote operations?
■ How do you expect COVID-19 to affect your
balance sheet and your ability to timely account for
and manage your assets?
■ How much cash do you currently have on hand and
how long is it expected to last at the current burn
rate? Do you have access to additional liquidity
through credit facilities or other sources? Please
provide details.
■ Did your landlord provide rent relief? Was it full or
partial? When does it end?
■ What are you currently doing to preserve capital
while still meeting short-term obligations? Did
you have money earmarked for long-term capital
investment that you are able to use to help
weather the crisis?
Human Resources Legal
■ Have you experienced a reduction in force? Were
employees terminated or furloughed?
■ What criteria was used to determine which
employees were impacted?
■ Did you consult outside counsel? Were consent
forms required?
■ Do you have a formal safety plan?
■ Do you require employees to be periodically tested
for COVID-19? If so, what frequency?
Business Continuity / Disaster Plan
■ Have you experienced challenges in implementing
your business continuity plan?
■ Were there material expenses when executing your
business continuity plan?
■ Do you have business interruption insurance?
General Insured Profile
■ Have you made a property damage claim that was
honored and paid in the last five years?
■ Have you had a successful business interruption
insurance claim in the last five years?
■ Is your business situated in a high-risk location
(e.g., FEMA-rated flood zone)?
■ Do you have a detailed property valuation and
loss control plan for all of the assets (buildings,
contents, machinery, equipment, etc.)?
Additional Resources
■ 5 Tips to Navigate Your Insurance Renewal in Light
of COVID-19
■ What to Expect from a Comprehensive Insurance
Audit (info sheet)
■ CBIZ Disaster Preparedness Guide
Your Team
Answering these questions may prove challenging, but
doing so now will ensure you are prepared when asked
by the underwriter. Your insurance broker should be
reaching out to you at least 60 to 120 days in advance
of your policy renewal date to discuss creative solutions
to ensure your organization is adequately protected at
the most affordable cost. Please reach out to your local
risk and insurance professional or a member of the CBIZ
Insurance Services team for assistance.
(Continued from page 1)
1-800-ASK-CBIZ • cbiz.com/banking BizTipsVideos AUGUST 2020CBIZ @CBZ