How to Run an RFP for Commercial Insurance: Templates and Questions for Large Accounts

A practical, step-by-step ultimate guide for procurement teams, risk managers, and finance leaders who need to run an effective, defensible Request for Proposal (RFP) for large commercial insurance programs in the United States. This guide covers strategy, RFP structure, sample language, scoring matrices, question banks for brokers and carriers, evaluation KPIs, common pitfalls, and contract/due-diligence checklists. Use it to save time, reduce procurement risk, and get the best combination of capacity, terms, and service for complex/high-limit accounts.

Table of contents

Why run a formal RFP for commercial insurance (and when to avoid one)
Who should be on the procurement team (stakeholders & roles)
Pre-RFP prep: data, goals, and the RFP “data room”
RFP structure: mandatory sections and sample language
Question bank: Broker, Carrier, Claims, and Service provider questions
Evaluation & scoring: weighted matrix and sample scoring template
Timelines, process milestones, and how long a good RFP takes
Award, contracting and binding authority due diligence
Negotiation tips, transition planning, and KPIs to monitor post-award
Common pitfalls and how to avoid them
Templates: sample RFP excerpt, vendor invitation email, scoring table
Resources & further reading (internal links to the cluster + external references)

Table of Contents

Why run a formal RFP for commercial insurance (and when not to)

Running an RFP for large commercial insurance accounts is about more than price. A formal RFP:

Ensures apples-to-apples comparisons across carriers/brokers and preserves auditability.
Forces bidders to disclose capacity, terms, exclusions, endorsements, and binding authority — critical for complex placements.
Reveals service, claims handling, and program architecture differences that materially affect total cost of risk.
Creates a defensible procurement record for finance, audit, and governance.

When to avoid a full RFP:

Minor renewals where an incumbent has clearly demonstrated value and market appetite.
Highly time-sensitive placements where delaying to run a full RFP would materially increase program risk.
Situations where the market materially changed and you need short-term renewal placements (consider a targeted mini-tender instead).

Engage early. For complex programs, leading brokers and purchasers recommend starting the tender cycle many months before renewal; a rushed procurement often reduces outcomes and raises implementation risk. (aon.com)

Who should be on the procurement team (stakeholders & roles)

Large accounts require a cross-functional team. Typical roles:

Executive Sponsor (CFO or Head of Risk) — approvals and governance.
Procurement Lead — runs RFP logistics and scoring.
Risk Manager / Insurance Buyer — defines coverages and technical requirements.
Legal Counsel — reviews contract terms and vendor agreements.
Internal Claims/Operations Lead — evaluates claims-handling and service.
Benefits/HR (if employee-related exposures included).
External Consultant or Independent Advisor (optional) — for benchmarking and technical review.

Tip: Include someone with loss-control or operations knowledge to validate vendor service capabilities in practice, not just on paper.

Pre-RFP preparation: data pack, goals, and the vendor “data room”

Before issuing the RFP assemble a complete data pack that bidders can use to price and design solutions. Typical contents:

Company profile and organizational chart.
Detailed description of operations by location and revenue or payroll by location.
Loss runs (5 years preferred) with claim descriptions and reserve movement.
Current policies, endorsements, and summary of limits/deductibles.
Risk control reports, safety metrics, OSHA logs if relevant.
Certificates currently in force, contracts that impose insurance obligations.
Historical premium and audit reconciliations.
Any litigation or known exposures anticipated.

Create a secure “data room” (SFTP, encrypted cloud folder) and give controlled access. Require bidders to sign an NDA if detailed loss/claims data is present.

Why loss runs matter: carriers and brokers rely on granular loss detail to assess underwriting appetite, potential aggregation issues, and to price high-severity exposures accurately. Failure to provide reliable loss history causes inconsistent proposals and poor comparisons. (Best practice sources and RFP templates for insurance procurement exist from firms who emphasize strong pre-RFP preparation). (riskonnect.com)

RFP structure: mandatory sections and sample language

A well-structured RFP reduces ambiguity and improves response quality. Use numbered sections to make responses traceable.

Mandatory sections (recommended):

Executive summary and objectives
Company background and risk overview
Instructions to bidders (format, contacts, NDA, submission deadlines)
Scope of work and required coverages (detailed schedule)
Loss history and data access
Service level expectations, KPIs, and reporting requirements
Pricing format and fee disclosure (commissions, fees, contingencies)
Evaluation criteria and scoring methodology
Contract terms and required endorsements
On-site visits, interviews, and reference checks
Timeline and award process
Confidentiality and proprietary information

Sample RFP excerpt (Coverage schedule language)

Provide insurance program proposals to cover the following lines on an admitted/non-admitted basis as indicated. For each line, provide:

Limits and deductible options

Expected policy form (ISO, manuscript) and material endorsements/exclusions

Retroactive dates (for claims-made coverages)

Expected premiums and estimated binding timeline

Any policy conditions or warranties required by the carrier

Include required forms such as Additional Insured wording, Waiver of Subrogation, Primary & Non-Contributory endorsements, and evidence of Financial Strength criteria (e.g., AM Best rating A- or better) if applicable.

Question bank: Broker, Carrier, Claims, and Service provider questions

Below are exhaustive questions you can copy into your RFP. Split them into “Must Answer” and “Optional Clarifying” buckets.

Broker / Advisor questions (must answer)

Describe your experience placing programs of this type and size (largest placements in last 3 years).
Provide the names of underwriters/carriers you expect to approach and confirm appetite.
Explain your distribution channels and whether you will use retail or wholesale markets.
Disclose all fees, commissions, overrides, contingent commissions, and referral arrangements.
Do you have binding authority with any carriers? If yes, provide carriers and limits of authority. (Check binding authority and commission structures during due diligence). (agentsync.io)
Provide three client references for accounts of similar industry and size (contact and scope).
Provide a transition plan and timeline if selected (staffing, policy issuance, data migration).

Carrier / Underwriter questions (must answer)

Confirm admitted vs. non-admitted capacity by state and explain implications for tax and regulatory differences.
Provide the exact policy form and all endorsements to be used for this program.
List all material exclusions and standard policy conditions you intend to apply.
Confirm claims handling process (in-house vs. third party) and provide SLAs for initial acknowledgement, investigation, and reserving.
Provide recent examples of how your underwriting appetite changed for this sector in the last 24 months.

Claims & Service questions (must answer)

Describe your claims reporting structure and escalation matrix for large losses.
Provide average lag times for initial claim acknowledgement, first-party payments, and large-loss response teams.
Provide KPIs reported to clients and sample monthly/quarterly report.

Optional clarifying questions (to probe)

How do you manage catastrophe aggregation for multi-location programs?
For captive solutions: provide financial model, expected premium volatility, and stop-loss design.
For programmatic placements: how do you ensure consistent coverage language across multiple SIRs or layers?

Include a table in the RFP where vendors fill concise, numeric or short-text responses so evaluators can quickly compare answers.

Evaluation & scoring: weighted matrix and sample scoring template

Define evaluation criteria and weights up front. Example high-level weightings for a large complex program:

Technical fit & coverage terms — 30%
Carrier strength and capacity — 20%
Pricing & total cost of risk — 20%
Claims handling & service model — 15%
Transition plan & implementation risk — 10%
References & past performance — 5%

Sample scoring table (simple template)

Criteria	Weight	Vendor A	Vendor B	Vendor C
Technical fit & coverage	30%	27 (9/10)	24 (8/10)	18 (6/10)
Carrier strength	20%	18 (9/10)	16 (8/10)	14 (7/10)
Pricing (TCO)	20%	16 (8/10)	18 (9/10)	12 (6/10)
Claims & service	15%	13.5 (9/10)	12 (8/10)	9 (6/10)
Transition risk	10%	9 (9/10)	7 (7/10)	6 (6/10)
References	5%	4.5 (9/10)	3.5 (7/10)	2.5 (5/10)
Total score	100%	88.0	80.5	61.5

Scoring guidance:

Use multiple evaluators and average scores to reduce bias.
Require evaluators to document reasons for each score to preserve procurement audit trail.
Consider using a normalization step if one vendor’s price is an outlier to avoid skewing total score.

Best practice: Limit the shortlist to 3–5 bidders to keep evaluation manageable and encourage high-quality responses. Avoid inviting excessive vendors; it dilutes evaluation bandwidth and raises procurement overhead. (agentsync.io)

Timelines, process milestones, and how long a good RFP takes

For large accounts a typical timeline:

Week -16 to -12: Define objectives, collect data, select shortlist.
Week -12 to -10: Issue RFP and open Q&A period (2 weeks).
Week -10 to -8: Responses due; begin initial compliance checks.
Week -8 to -6: Shortlist finalists; schedule presentations and interviews.
Week -6 to -4: Conduct reference checks, site visits, and final negotiations.
Week -4 to -2: Final selection and board/exec approvals.
Week -2 to 0: Contract execution and binding.

Note: Many large-broker procurement teams recommend starting the process at least 6–8 months before renewal; extra runway improves market access and negotiation outcomes. Shorter timelines can still work for smaller scope procurements but increase the chance of suboptimal placements. (aon.com)

Award, contracting and binding authority due diligence

Before awarding, run a final due-diligence checklist:

Carrier financial strength (AM Best, S&P) and admitted status in required states.
Confirm broker binding authority and any delegated authority limits. Obtain written evidence. (Commissions and binding structures must be transparent; seek the broker’s disclosure). — See related guidance on commissions and binding authority. Commissions and Binding Authority to Check
Confirm policy form and exact endorsements that will be attached at binding.
Request sample policy jackets and endorsement wordings for review by legal counsel.
Verify the selected broker/carrier’s malpractice professional liability and E&O insurance limits.
Confirm certificate issuance timelines and evidence of policy placement for contract compliance.

Contract items to include:

Service level agreements (SLAs) and KPIs (reporting frequency, response times).
Data security and confidentiality provisions (especially when sharing loss runs and employee data).
Termination rights for cause and for convenience, with transition assistance obligations.
Fee & commission disclosure clause with periodic reconciliation rights.

Negotiation tips, transition planning, and KPIs to monitor post-award

Negotiation tactics:

Use the RFP as leverage—document irregularities or superior services from other bidders during negotiation.
Negotiate for improved policy language (endorsements) rather than only premium reduction; small wording changes materially affect claims outcomes.
Seek transparency on fee splits and contingent compensation. If using a broker, negotiate performance-based fee elements tied to measurable outcomes.

Transition plan essentials:

Assign a transition lead at both buyer and broker/carrier.
Create a 90-day implementation checklist: data migration, policy binder issuance, certificate distribution, training for internal stakeholders.
Schedule weekly standups during the first 90 days.

Post-award KPIs to monitor:

Binder & certificate issuance lead time.
Claims acknowledgement and first-contact time.
Large-loss response time (hours from reporting to dedicated response team).
Quarterly premium reconciliation accuracy.
Client satisfaction surveys (quarterly or semi-annual).

For more on monitoring broker performance and the KPIs you should require, see: Evaluate Your Broker: Key Performance Metrics.

Common pitfalls and how to avoid them

Pitfall: Focusing only on price.

Avoid: Use total cost of risk (premium + deductibles + retentions + service impact).

Pitfall: Vague requirements that create inconsistent responses.

Avoid: Provide a standardized RFP form and data room; require vendors to complete the same tables and fields.

Pitfall: Failure to verify carrier and broker credentials.

Avoid: Perform licensing and financial-strength checks (NAIC resources can help verify licensing and complaints). (content.naic.org)

Pitfall: Inviting too many bidders.

Avoid: Shortlist based on capability and fit — target 3–5 quality respondents. (agentsync.io)

Pitfall: Rushing the timeline.

Avoid: Start early; solicit bidders at least 2–3 months before you need binding to allow negotiation and placement. (aon.com)

Templates

Sample short vendor invitation email

Subject: RFP Invitation — [Company Name] Commercial Insurance Program

Body:
Dear [Name],

[Company Name] invites [Broker/Carrier] to submit a proposal for our commercial insurance program for the policy term beginning [Date]. The RFP document and loss history are available in the secure data room at [link]. Submission deadline: [Date]. Please acknowledge receipt and confirm intent to respond by [Date].

Sincerely,
[Procurement Lead contact info]

Sample RFP table (pricing and capacity)

Line	Current Limit	Desired Limit	Deductible Options	Expected Capacity (per layer)	Premium (proposed)
General Liability	$5M	$10M	$25k / $50k / $100k	Carrier A: $5M	$XXX,XXX
Excess Liability	$10M	$50M	$100k SIR	Layered: Carrier B $10M, Carrier C $30M	$XXX,XXX
D&O (Side A/B)	$10M	$20M	$50k retention	Carrier D: $10M	$XXX,XXX

Example RFP language: Commission and fee disclosure (mandatory)

All brokers and advisors responding to this RFP must fully disclose:

All compensation, including base commissions, contingent or profit-share arrangements, contingent commissions, referral fees, and third-party revenue.
Any ownership interests or referral arrangements with carriers or third-party administrators.
Any fees charged directly to the client, including placement, program management, or consulting fees.

Failure to fully disclose compensation arrangements will result in disqualification.

For further reading on negotiating broker fees and commission transparency see: Negotiating Broker Fees and Commissions: Tactics to Improve Transparency and Lower Costs.

RFP for special situations: Fleet, high-exposure, and captive solutions

If you’re running an RFP for a specific high-exposure class (fleet, construction, energy), tailor requirements:

For fleet: request telematics data integration, safety programs, and detailed loss runs by vehicle. Use the specialist fleet RFP template for KPIs and evaluation scoring. See: RFP Template for Fleet or High-Exposure Accounts: Requirements, KPIs and Evaluation Scoring.
For captive or alternative risk financing: include financial modeling assumptions, stop-loss design, and reinsurance structure.
For high-risk industries: solicit carrier appetite memos and claims legal defense strategies. See guidance: Selecting a Broker for High-Risk Industries: What to Ask About Carrier Appetite and Claims Support.

Post-RFP: Implementation checklist (first 90 days)

Finalize binding endorsements and issue master policy binder.
Distribute certificates to key counterparties and confirm additional insured endorsements.
Execute transition plan: data migration, training, staff introductions.
Validate reporting cadence and initial KPI delivery.
Conduct a 30/60/90 day review meeting and adjust SLAs if necessary.

For a comprehensive procurement step-by-step checklist, see: Step-by-Step Procurement Checklist: From Coverage Needs Analysis to Final Policy Bind.

Expert tips & closing guidance (practical takeaways)

Start early and limit the shortlist to quality respondents — more bidders does not equal better results. (aon.com)
Standardize response formats and use scoring templates to ensure objective comparisons.
Prioritize coverage terms and claims handling over marginal premium differences.
Insist on full fee and binding authority disclosure from brokers; confirm by document review.
Require sample policy forms and endorsements before award to validate what will actually be issued. Consider legal review of manuscript forms.

Running a rigorous RFP for commercial insurance is a strategic investment: it protects governance, surfaces meaningful differences in program design, and — when executed properly — increases the odds you obtain the best total value for risk transfer and ongoing service.

Related internal resources (further reading — from the same content cluster)

External references and sources used

NAIC — guidance on choosing agents/brokers and licensing checks. (content.naic.org)
Aon — procurement timing and tender best practices for complex/procurement cycles. (aon.com)
Responsive — practical best practices for insurance RFPs and vendor evaluation. (responsive.io)
Riskonnect — RFP templates and question banks (claims/billing/tech procurement examples). (riskonnect.com)
AgentSync — common vendor RFP pitfalls and shortlist guidance. (agentsync.io)

If you want, I can:

Customize a full RFP document (Word/Google Doc) pre-filled with your company-specific language and loss-run placeholders.
Build an editable scoring spreadsheet for evaluators with weighted calculations.
Draft an NDA and vendor engagement email tailored to your stakeholders.

Which of the above would help you move forward right now?