Licensed Conveyancers - tips for completing your PII proposal form

Building a relationship with your PII insurer is important. A strong renewal presentation is a good start to achieving this.

Your PII proposal form requires a great deal of information. Investing time and attention to its completion will set your renewal off on the right foot. Here are some key points:

• Ensure the form is legible and complete using the electronic format if at all possible.
• Include any supplementary information in a style that can be easily assimilated, with a clear reference to the numbering of the associated question on the proposal form.
• Ensure that the numbers add up. Underwriters don’t mind if you round off your income split between activities to whole numbers or calculate it to three decimal places – just as long as it adds up to 100%.
• Up-to-date claims records from previous insurers should be attached to the form, including those for any prior practices. Your claims history for the last six years is the usual starting point.
• If your firm does not record information in a way that corresponds with questions that are asked, then talk with Howden about providing the information you do record. Provided your information addresses the issue that the insurer is interested in, then this should not be a problem.
• Take care with Yes/No questions. The answer the insurer is looking for is usually obvious. If it clearly requires a “yes” answer and you are unable to give that, don’t worry. It might be that you can give an explanation that will still satisfy the insurer. In that case, you should put a note on the form to refer the insurer to your supplementary pages where your explanation can be found.
• If your claims record shows significant claim payments or reserves, offer an explanation within your supplementary information. A few lines on the circumstances, your thoughts on liability in respect of open matters, and any other points where you feel that the hard facts on the claims print do not truly reflect actuality can help.
• Tell underwriters if you have been able to learn from claims, close loopholes, tighten procedures, introduce new systems or in any other way alleviate the chance of recurrence. Underwriters will look for this if your claims record is less than stellar.
• Be your own best advocate. Firms often complain that the proposal form doesn’t give a complete picture of their business, or allow them to demonstrate why their firm is a better risk than others. That is a fair comment and we encourage you to include a letter or a separate note setting out information about the firm that doesn’t emerge from the answers on the proposal form. Be concise – two to three pages is enough.
• Ensure you comply with your duty of fair presentation under the Insurance Act. Double-check your proposal form carefully and ensure that you have disclosed all material information including any claims or circumstances that you have not yet notified.

Some of the above guidance might seem very straightforward, but even small things can make a difference and it is surprising how often some of these issues are missed. Regardless of market conditions, optimising your renewal presentation goes a long way to securing a successful renewal.