Professional Liability renewal application; what information does my firm need to gather?
Professional Liability, in many cases, renews on an annual basis. In order for the insurance companies to assess what the premium will be for your firm the insurance companies will require the renewal application completed. Below is a list of some of the information that the carriers will require:
Annual gross billings – this is your firms’ gross billings from the past fiscal year including sub consultants billings that are passed through your firm. Additionally, the insurance companies will ask for direct reimbursable (i.e. travel, printing, etc.). The insurance companies may ask for as far back as three year on billings and also the projected billings for the upcoming fiscal year. Insurance companies may request a breakdown of the billings that were attributed to interior design, feasibility studies, master plans, reports and abandoned projects.
Disciplines – from the gross billings from the past fiscal year what percentage is attributed to each discipline? Is your firm an architecture firm, structural engineer, electrical engineer, etc? This percentage will not include your sub consultants.
Project types – what project types did your firm have from the past fiscal years gross billings? Single family homes, schools, shopping centers, etc? This section will equal 100% of past fiscal year billings.
Current projects – some insurance companies will ask for the 3 or 5 largest projects for the past 12 months. This information will need to include the project name, location, services provided and your billings for the specific project.
Contracts – from the total gross billings from the past fiscal year where there the contract types your firm used? Contracts include, but not limited to, your firms standard contract, client drafted contract or professional association contract.
Claims information – if your firm has had claims in the past year the more information provided on a claim the better. The insurance companies will ask for the name of the project, date of the claim, type of project, claimant, allegations/circumstances and demands/amount of damages. If the claim is closed the insurance companies may also ask for the lessons learned from the claim or procedures changes at your firm due to the claim.
The renewal application is valuable information for the insurance companies to determine your renewal premium. The more details your firm can provide the better. Your PUI Agent is here to help or to answer questions, please call or