Insurance Carrier’s Declaration Page

Insurance carrier’s declaration page is a name that historically comes from the past and typically declares or states as to what coverages are specifically provided for a unique risk. Most insurance contracts and policies nowadays are boilerplate templates and contracts. So paying attention to what is on the declaration page or pages is extremely important as that can specifically define what is and what is not being covered by the insurance carrier. Normally the declaration page or pages can provide 95% of the information that usually you would be searching for. Most declaration pages have the same basic categories of information which we will explain below.

Becoming familiar with the declaration page or pages and knowing what to look for can help you tremendously in understanding your insurance contract as well as comparing insurance proposals from other carriers. On the declaration page the insurance carrier will be listed. Many times major insurance carriers have subsidiaries whereby they use different carriers for different coverages in different states. Sometimes the financial strength of the subsidiary is not the same as the parent company if there is not a direct connection. This is important to determine which insurance carrier you are with and then to look up their financial health to make sure that your carrier meets the requirements of your vendors.

The policy number is almost always on the first declarations page. This comes in handy in doing certificates of insurance or notifying your vendors or if you have a claim. Many times the policy number is indicative of the type of contract that you have with the insurance carrier. Normally if the policy number starts out with the letters GL and then followed by a number that is indicative of a general liability insurance policy contract. Some of the other common prefixes for policy numbers would be the letters FP which would signify a fire policy. The letters BA would signify a business auto policy. Finally, the letters WC normally signifies a Worker’s Compensation policy.

All of the carriers have their owned nuances as to coding an insurance policy and almost without exception prefixes in the policy number signifies the type of contract and/or coverages. Some carriers have suffixes that designate the number of policy years that this contract has been in force. The last number of the policy number usually increases every year to indicate how many years the client has been insured with the carrier. It can be very confusing when you have been in business for many years and have many insurance policy numbers to deal with. By having a basic understanding of the general coding configuration on the declarations page and understanding how policy numbers are coded can help you to quickly find the information that you’re looking for.

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