Eman Wilder, CPIA, CISR, Account Executive – ASCE Member Insurance
Professional liability insurance plays a major role in securing the firm’s safeguard against costly claims related to errors and omissions, or negligence. Securing the proper coverage for your firm in large part depends on you, the applicant. Read on for a comprehensive look at some of the vital components of receiving the most accurate quote.
Accurately Completed Applications
An application for professional liability insurance is the start of the underwriting process and gives an overview of your firm’s operations. Areas reviewed include the firm’s operations, areas of practice, specialties, types of projects, annual revenues, risk management practices, and more.
It is critical that this information is correct at the beginning of the underwriting process. Missing or unclear information may raise red flags and cause delays. This may also alert underwriters that the firm may be unaware of, or lacks understanding of, its operations.
Additionally, an inaccurate or incomplete application may result in a quote that does not fully insure your firm’s risks. A carefully completed application shows the professionalism of the firm and ensures underwriters have a clear understanding of your operation.
Proof of Current or Past Coverage, Declaration Pages
The declaration page of your insurance policy contains vital information about your current coverage. Retroactive dates, endorsements, effective dates, limits, and deductibles, among other information, are all crucial to providing the most accurate quote possible.
Declaration pages can also identify areas in which the firm may be lacking in coverage. In reality, underwriters are not able to give an accurate quote without these extremely critical facts.
Claims History, Loss Run Reports & Claims Summaries
Another key component to the quoting process is loss run reports, which provide underwriters with a history of any claims or incidents and whether any amounts were paid out as a result of those claims or incidents.
With these reports and the narratives you provide about the claims or incidents, underwriters can see if there is a pattern, such as design, planning, or project errors, as well as what efforts the firm has made to prevent similar claims in the future. Reviewing these occurrences allows underwriters to make a better risk assessment, which could affect the premium.
Additional Information, Underwriting Requests
While every component of the application process is crucial, promptly responding to any underwriting request for additional information is imperative. Additional information requests typically concern the risk management of a specific project and require further details about the firm’s operations.
In fact, it shows that the insurance company wants to fully understand your work and judge your firm, not another firm with similar projects. These additional information requests are to ensure the most accurate quote possible with the proper coverage to ensure the firm is properly insured. While these requests may seem time-consuming or burdensome, it is a chance for the firm to show confidence, build trust, and be transparent.
Streamline
From the very start of the quoting process, your firm has been demonstrating your commitment to receiving the most accurate and comprehensive quote possible to ensure your firm’s financial future should a claim arise. Gathering information and responding both quickly and clearly to underwriting requests cannot be emphasized enough to streamline the process of providing a quote promptly.
In any specialized field, and, in particular, for such a varied and important field as engineering, a more comprehensive submission could result in a more enhanced insurance policy for your firm.
