Executive Protection Firm Commercial Crime: Pricing Methodology

What rating basis does Commercial Crime use for Executive Protection Firms?

The pricing unit for Commercial Crime on Executive Protection Firms is per $1,000 of employee dishonesty limit. Carriers multiply a per-unit rate (the base loss cost set by ISO, modified by carrier-specific factors) by the exposure to produce the base premium.

This is the most important number on the policy — it controls how renewal premiums move as your operation grows or contracts. The audit at policy expiration trues up the actual exposure against the estimated exposure used at binding, producing return premium or additional premium.

The class-code decision for Executive Protection Firms on Commercial Crime

The ISO class assignment for Executive Protection Firms on Commercial Crime is a judgment call by the underwriter, guided by class manuals and standard operating definitions. The executive protection firm provides the operational facts; the underwriter maps those facts to a class.

The wrong class is the most common cause of overpayment on Commercial Crime accounts. We recommend asking the broker to confirm the assigned class code on every binder and comparing it against prior years — inconsistencies often point to a correction opportunity.

The audit basis on Executive Protection Firms Commercial Crime

Commercial Crime policies on Executive Protection Firms are typically audited at expiration. The auditor reviews actual exposure data for the policy period — payroll, revenue, vehicles, locations — and trues up the premium against what was estimated at binding.

If actual exposure exceeds estimated, you owe additional premium ("audit premium"). If actual exposure was lower, the carrier refunds the difference ("return premium"). Audit results that significantly diverge from the original estimate often trigger underwriting questions at the next renewal.

How does schedule rating affect Executive Protection Firms Commercial Crime?

Filed schedule-rating plans give underwriters discretion to apply credits or debits to Executive Protection Firms Commercial Crime based on operational qualities. The underwriter documents the rationale; the credit or debit applies through the policy term.

Schedule credits add up to real money. A 10% schedule credit on a $15,000 premium is $1,500/year — and that credit usually carries forward at renewal as long as the operational factors that justified it remain.

What changes at renewal for Executive Protection Firms on Commercial Crime

The renewal-time recalc on Executive Protection Firms Commercial Crime captures everything that has changed in the year between policies. New rate filings, your new exposure, your new loss experience, and any operational changes you disclosed all feed into the new premium.

If the renewal number surprises you, ask the broker for the line-by-line breakdown: base rate change, exposure change, experience-mod change, schedule-rating change. Each line is auditable. An unexplained renewal jump usually points to one of those factors moving meaningfully.

How carrier loss-cost multipliers move Executive Protection Firms Commercial Crime pricing

Two carriers can quote the same executive protection firm on Commercial Crime and produce premiums that differ 15-30%. The difference comes from carrier-specific loss-cost multipliers (each carrier's adjustment to the ISO base rate), schedule-rating philosophy, and target loss ratios for the segment.

Some carriers actively pursue workforce provider business and price aggressively for it; others see the segment as marginal and price defensively. Knowing which carriers are currently in either bucket is the broker's job — and it materially affects which markets to target.

Common methodology mistakes that overprice Executive Protection Firms Commercial Crime

Executive Protection Firms Commercial Crime accounts most often carry hidden costs in three places: a class code that has drifted from the actual operation, an exposure declaration that overstates revenue or payroll, and an experience modifier that hasn't been verified against the carrier's calculation.

Asking the broker to walk through each of these at renewal — preferably before the renewal quote is finalized — produces the largest single set of correctable savings on the policy.