Whether you're renewing your policy or starting a new one, insurers have an extensive review process once an application is received. Reviewing applications helps underwriters make sure what's on the application is both accurate and something that can be covered by the policy. After all, there's no point in buying insurance if your operation(s) are excluded by the policy you're applying for! After your application is read, an underwriter will cross check the information by Googling you/your business and looking for/at social media pages. During the review process, if discrepancies are found between your application and what is online, an agent will follow up with you for clarification.
Being transparent and truthful on your application is extremely important. If it's found you're lying, whether accidental or intentional, it's considered misrepresentation. If it's found you're misrepresenting yourself, it can lead to the rejection of your application, denying a requested claim, receiving a non-renewal or cancelation of coverage, and in extreme cases, being charged with insurance fraud (more on that below).
On SIA's insurance applications, misrepresentation can look like many things including (but not limited to) the following:
- Withholding information such as a performer skill, operation of your business, or an item you're selling
- False statements to try to receive insurance
- Providing an address in the United States on your account when you're not based in the U.S.
- Having a dba on your individual performer policy that makes it sound like you're insuring a group
We've talked previously in a blog about the perils of insurance fraud, but what is considered insurance fraud? Insurance fraud can look like (but is not limited to) the following:
- Misrepresentation
- Buying insurance for an event, submitting your proof of insurance to an event/venue, and then canceling your policy (before the effective date)
- If a certificate of additional insured is requested for a policy that is then canceled before the start date, the event/venue will be notified that you no longer have coverage
- Doctoring an old policy or certificate of insurance to make it seem like you currently have coverage when you don't
With an increase in events/venues requiring insurance, it's important to make sure that you are taking the steps to be truthful on your applications. Insurance fraud can result in not being able to obtain insurance through SIA in the future, and possibly other agencies. You are also risking your career (no insurance means no bookings). As an insurance agency, we're also obligated to report any insurance fraud to the Insurance Commissioner which can result in penalties like fines, community service, or even jail time.
If you have any questions, please feel free to reach out to our office via email (info@specialtyinsuranceagency.com) or by calling us at 715-246-8908!
