This article was originally printed in the May/June 2026 issue of the California Veterinarian magazine.

One of the most common questions we hear from new insurance applicants at Veterinary Insurance Services Company (VISC) is, “Why do you need all of this information?” It’s a fair question. Insurance applications today are more detailed than ever, especially here in California. Once we hit “submit,” your application doesn’t simply get priced and approved. It enters a structured underwriting process shaped by carrier appetite, actuarial data, catastrophe modeling, and guidelines filed with the California Department of Insurance (CDI). Understanding that process provides clarity—and leverage. When our carrier partners review a submission, they evaluate risk from multiple angles.

The Animals You Treat

Most standard carriers will not write risks involving racehorses or certain exotic animal exposures due to higher severity potential and loss volatility. A small-animal practice presents a very different risk profile than a mixed or specialty operation. Each submission must align with a carrier’s defined appetite.

Location

Wildfire exposure is one of the most significant underwriting considerations in our state. Carriers review brush scores, proximity to wildland areas, defensible space, and prior fire history. In higher brush zones, property coverage may require increased deductibles, coverage limitations, or may not be offered at all. These decisions are driven by catastrophe modeling and reinsurance pressures, not the character of the practice.

The Building

Age and condition matter. Older buildings—particularly pre-1970s—often require confirmation that electrical, plumbing, roofing, and HVAC systems have been updated.

Underwriters also review:

• Roof age
• Construction type
• Owner vs. tenant occupancy
• Vacancy status

Vacant buildings carry materially higher exposure. Most standard carriers will not insure properties left vacant beyond a defined period due to increased fire, vandalism, and water damage risk.

Claims History

Loss runs are one of the most influential components of underwriting. Underwriters look at frequency, severity, trends, and corrective action taken—not just whether a claim occurred.

Payroll, Revenue, and Operations

For workers’ compensation placements, annual payroll, job classifications, and claims performance are central. For professional liability and business owner’s policies, revenue, services offered, and operational controls influence eligibility and pricing.

How Pricing Is Determined

Premium reflects measurable exposure, including:

• Claims performance
• Brush and catastrophe modeling
• Building characteristics
•  Payroll and revenue
• Scope of services
• Industry-wide actuarial trends

Carrier rates and underwriting guidelines are filed with the CDI and must be applied consistently. That consistency ensures regulatory compliance and protects the long-term sustainability of coverage for veterinary practices statewide.

Carrier Appetite

Each carrier operates within a defined appetite, the profile of risks they are structured and approved to insure. Appetite is shaped by actuarial results, reinsurance agreements, and CDI-filed underwriting guidelines. VISC does not create those parameters; we operate within them.

If a submission falls outside appetite—whether due to racehorse exposure, certain exotic animals, wildfire exposure without mitigation, prolonged vacancy, or significant loss history—a carrier may initially decline to furnish the coverage. That is where advocacy begins.

Advocacy in Action

We are bound by carrier guidelines, but we are never passive in the process. When we request additional documentation, roof updates, defensible space photos, detailed loss explanations, or other supporting information, we are strengthening our submission on your behalf. A thorough presentation improves approval odds, strengthens negotiating leverage, and positions your practice as a preferred risk.

And when a standard carrier’s appetite does not align with a particular exposure, we pursue alternate markets designed for specialty or unique risks. Our responsibility is not simply to submit; it is to problem-solve and secure the right placement.

Why This Matters in California

California presents unique underwriting challenges: wildfire exposure, regulatory oversight, litigation trends, and catastrophe-driven market adjustments. Responsible underwriting ensures coverage remains available and sustainable for the veterinary community. When practices invest in building maintenance, defensible space, staff training, cyber safeguards, and proactive risk management, they strengthen both their operations and their insurability.

At VISC, transparency builds trust. Our partnerships with our carrier partners allow us to navigate appetite strategically and advocate effectively on your behalf. Because in the end, it’s never just about policies—it’s about partnerships.

If you have questions about how your practice is being evaluated, how to strengthen your submission, or what options may be available in today’s California market, our team at VISC is here to help