When I sought the exception of certain insurance coverage requirements pertaining to Commercial General Liability (CGL) and Umbrella or Excess coverage, it was vital that it demonstrated a certain degree of compliance to FM. Furthermore, the details of its existing coverage were also utilized. 

Additionally, it is imperative to emphasize on the fact that your policy limits are greater than the requirements and are sufficient to account for losses or claims. Even though the existing coverage might not be of the type/structure required. To further improve the chances of the approval of the exemptions, it is important for you to know that factors such as increased cost of obtaining compliant coverage, low risk, and a low claims history are extremely important. 

Specifications: 

Template Outline: 

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

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

<Organization/Borrower name> is currently applying for the waiver of coverage requirements pertaining to the Commercial General Liability (CGL) and Umbrella/Excess coverage. These requirements include <requirement name/details>. 

<Agent name> is seeking the exemption of the certain Commercial General Liability (CGL) and Umbrella/Excess coverage requirement on behalf of <Organization/Borrower name>. An exemption is being requested for <requirement name/details>. 

#2 - What coverage details should be included when applying for the waiver?  

When applying for a waiver, a borrower should provide all details pertaining to the current coverage they have in place. Such details may include provider name, coverage name, policy type and structure, and policy limits. Below is an example that can be used for assistance when writing this section.  

<Organization/Borrower name> currently owns <Property name> located on <Property address>. The property contains <number of buildings/units>, each of which is insured by <Insurance Provider name>. Each location has <Insurance coverage 1> and <Insurance coverage 2>. <Insurance coverage 1> has a per occurrence limit of <dollar amount> and an aggregate cap of <dollar amount>. Furthermore, <Insurance coverage 2> provides additional coverage of <dollar amount>.  

#3 - How to emphasize the compliance extent of the current coverage? 

In addition to providing details about the current coverage, the borrower should also emphasize the extent of compliance of the current coverage they have. This extent can be demonstrated by providing details about how the current coverage might not be in the type/structure as required, but it has a greater limit than what is required. Below is an example that can be used for assistance if required. 

<Insurance coverage 1> and <Insurance coverage 2> are structured as <policy structure 1> and <policy structure 2>. Although the policies are not structured as required, <Insurance coverage 2> provides coverage of <dollar amount> which is <dollar amount> greater than the coverage requirement.  

#4 - What details should be provided to demonstrate the extent of future losses or claims? 

Providing details about the risk of damages associated with the property and the history of past claims can help demonstrate that future claims are not likely to exceed coverage requirements. Such details can entail that the current coverage a borrower has in place is sufficient. Provided below is an example that can be used for further assistance.  

<Organization/Borrower name> has currently had <number of claims> over the past <number of years>. The total amount of these claims is <dollar amount>, which does not exceed the existing coverage limits in place. In addition, the property is located in <City, State>, which is not a high-risk location for terrorist attacks, therefore, <Organization/Borrower name> is unlikely to undergo events that could lead to losses/claims in excess of the current coverage limits.  

#5 - How to provide details about the reasons for non-compliance?  

When applying for a waiver, a borrower should provide details about the reasons for their non-compliance. Such reasons may include the increased costs in insurance premiums associated with the required coverage. Provided below is an example of how this section can be written.  

<Organization/Borrower name> currently pays <dollar amount> in insurance premiums. Adding the required coverage would increase the costs by <dollar amount>, leading to premium payments of <dollar amount>.  

#6 - How to demonstrate financial stability? 

A borrower should also provide details of their or the sponsor’s/guarantor’s financial positions. Such details can include net worth and liquidity values. Providing these details can help demonstrate that the borrower has sufficient capital to account for losses/claims that exceed coverage requirements. Below is an example that can be used for further assistance if required.  

<Organization/Borrower name> currently has a net worth of <dollar amount> and a liquidity value of <dollar amount>, which is sufficient to account for claims that exceed the current coverage requirement.  

#7 - How to justify the request for approval?  

The borrower should also provide a justification for their request for exemption from certain coverage requirements. This justification can be provided based on the details of the current coverage and the extent of compliance the current coverage has. In addition, the borrower can also mention aspects of the current coverage that exceed the requirements. Other factors, such as increased costs triggered by obtaining compliant coverage, low claims history, and financial stability, can also be used to strengthen the case for exemption.