Considering the success I have had in submitting waivers in the past, I realized the importance of seeking the exception of per location, per occurrence, or aggregate cap insurance coverage requirements. In order to demonstrate that my waiver request is adequate for the property, the details pertaining to its current coverage limits were provided. 

In order to show that previous loss/claims have never breached the current coverage limits, I added the loss monitoring details and historical loss/claims records in my waiver request. To justify the coverage, industry standards should be used in the application. The coverage’s economic feasibility, difficulty in acquiring the required coverage, and financial stability were some of the other prominent factors that should be additionally added. 

An individual could create an insurance waiver for the following specifications based on the outline given below. 

Specifications: 

Template Outline: 

#1 - How to write the opening section of the waiver?  

The opening section of the waiver should clearly state the requestor’s identity and the purpose or type of waiver being requested. Below are a couple of examples that can be used for assistance if required.  

<Organization/Borrower name> is applying for the waiver of <Coverage requirement> for the <Property name(s)>.  

<Agent name> is seeking the exemption of <Coverage requirement> on behalf of <Organization/Borrower name>  for the <Property name(s)>.  

#2 - What property details should be included in the waiver?  

When writing a waiver, it’s important to include the property name(s), location(s), number of buildings and units, and the type of facility. Providing such details can help determine if certain coverage requirements are applicable to the organization/borrower or not. Provided below is an example that can be used for further assistance. 

<Organization/Borrower name> currently owns <Property name>. The property consists of <number of buildings> and <number of units> and is currently categorized as a <property type>.  

#3 - How to elaborate on the current insurance coverage?  

To elaborate on the current insurance coverage, a borrower should provide all the relevant details of the policies in place. Some of these details include the policy name, the type of coverage in place, and the coverage limits. The example given below can be used to structure this section. 

All locations pertaining to the property are insured by <Provider name>. The property currently has <Insurance 1>  and <Insurance 2>. These policies are structured on a <policy structure> basis. <Insurance 1> currently has a per claim limit of <dollar amount> and an aggregate of <dollar amount>. In addition, <Insurance 2> has an aggregate cap of <dollar amount>.  

#4 - How to associate current coverage with industry standards?  

Borrowers should also mention that the coverage they have in place is common for the industry they are in. Providing such details can help demonstrate a certain degree of compliance. In addition, it can help elaborate that the required coverage type is not a severe necessity. Below is an example that can be used for assistance.  

The <coverage structure> for the <Insurance 1> is common throughout the <industry name> industry, and organizations pertaining to this industry have aggregate caps of <dollar amount>.  

#5 - What details can be used to demonstrate the sufficiency of the existing coverage? 

To demonstrate that the current coverage is sufficient, organizations should mention how their losses and claims are monitored. In addition, they should also provide the previous claims data. The example below can be used to structure this section.  

All claims/losses pertaining to <Property name> are monitored internally. Since <year>, there have been a total of <number of losses/claims> amounting to <dollar amount>. The highest claim was in <year> and amounted to <dollar amount>. Therefore, the coverage in place is adequate for <Property name>.  

#6 - How to emphasize compliance efforts?  

Organizations/borrowers can emphasize that their current coverage exceeds the required amount. In addition, they can also mention that efforts to acquire the required type of coverage were made, however, no compliant coverage is available for businesses within that industry. Below is an example that can be used for assistance if required.  

<Insurance 2> currently has an aggregate limit of <dollar amount> which is <dollar amount> more than the requirement. In addition, <Organization/Borrower name> has made efforts to acquire the required coverage type from <number of providers>, however, the required coverage type is not available for this industry.  

#7 - How to justify the request for approval?  

Borrowers should justify their request for approval prior to submitting the waiver. This justification can be made on claims history that has not exceeded coverage limits, and current coverage is adequate for the property. Factors such as the current coverage being an industry standard and the unavailability of the required coverage type can also be used. In addition, borrowers can include their sponsor’s net worth and liquidity to demonstrate financial stability and strengthen their request for exemption.