The Importance of Proposal Forms

Proposal forms are the foundation of the application process for Professional Indemnity insurance. These forms serve as a means for professionals to provide detailed information about their business practices, operations, and risk exposures to insurance providers, allowing them to accurately assess the risk exposure.

Why are proposal forms so important?

Risk Assessment: Proposal forms require professionals to disclose crucial information about their services, clients, projects, and risk management practices.

Customised Coverage: Through the information provided in the proposal form, insurers can tailor coverage to the specific needs and risk profile of the professional. This ensures that the insurance policy aligns closely with the professional’s area of expertise, minimising coverage gaps and unnecessary expenses. Certain professionals will require certain compliant wordings such as members of RICS.

Risk Mitigation: Completing a thorough proposal form often prompts professionals to evaluate their risk management practices. This self-assessment can lead to the implementation of improved processes and protocols, reducing the likelihood of future claims.

Claim Validity: In the event of a claim, the proposal form serves as a reference point. It provides a documented record of the professional’s representations at the time of application, helping to establish the context of the services provided and the scope of coverage.

Tips for checking the completion of Proposal Forms

Accuracy is Key: Check your customer has answered all relevant questions within the proposal form. A good question to ask is “does this make sense to me?” If the answer is no, then you may need to obtain more information. If you are ever unsure, contact one of the Air Underwriting team, who will be happy to discuss this with you.

Detail Matters: Make sure your customer is thorough with their answers. Insurers don’t like to see one-word answers, it looks like little effort has been put in and makes it difficult for insurers to understand the risk exposure.

Risk Management: Ask your client to highlight their risk management practices and efforts to mitigate potential liabilities. This demonstrates their commitment to minimising risks.

Engage with Air Underwriting: If you are uncertain about certain aspects of the proposal form, consult with Air Underwriting. We can talk through questions within the proposal form and help you to help your client.

Proposal forms are more than just paperwork; they are essential tools that facilitate a transparent and informed partnership between professionals and their insurers. By accurately completing these forms, professionals can secure tailored Professional Indemnity insurance coverage that aligns with their specific needs and risk exposures, providing valuable peace of mind in an increasingly litigious business landscape.

Questions about Proposal Forms?

Contact us to speak to one of the Air Underwriting team about the proposal form.