Insurance Proposal Template

Prepared for [CLIENT.Company]

Created by [COMPANY.FirstName] [COMPANY.LastName]

[COMPANY.Company]

Cover Letter

Business Insurance Proposal

For [CLIENT.Company]

Presented By

[COMPANY.FirstName] [COMPANY.LastName]

[COMPANY.Company]

[COMPANY ADDRESS]

[COMPANY PHONE]

 

PandaTip: Add relevant information into the cover letter here.

IMPORTANT: This proposal is a general outline of the terms and conditions of the insurance proposed by the insurers, based on the information provided by your company. It does not include all of the terms, coverages, exclusions, limitations, and conditions of the actual policy contract language. The insurance policies themselves must be read for those details. Policy forms for your reference will be made available upon request.

1. Schedules

Named Insured Schedule 

[LIST OF ADDITIONAL NAMED INSUREDS]

Any entity, partnership, joint venture or Limited Liability Company not named as an insured is not covered under these proposed coverages.

Locations Schedule

[LIST LOCATIONS AND ADDRESSES]

Vehicles Schedule

[LIST VEHICLES WITH YEAR MAKE MODEL VIN]

2. Commercial Property Insurance

Business Property Coverage
Insurance Company: [PROPERTY CARRIER NAME]

A.M. Best Rating: [PROPERTY CARRIER RATING]

Admitted/Non-Admitted: [PROPERTY STATE ADMITTED OR NON ADMITTED]

Proposed Policy Term: [PROPERTY EFFECTIVE DATE] to [PROPERTY EXPIRATION DATE]

Limits
• $[BUILDING DOLLAR AMOUNT] Buildings
• $[BUSINESS PERSONAL PROPERTY DOLLAR AMOUNT] Business Personal Property
• $[BUSINESS INCOME DOLLAR AMOUNT] Business Income
• $[EDP EQUIP DOLLAR AMOUNT] EDP Equipment
• $[BUILDING ORDINANCE DOLLAR AMOUNT] Building Ordinance
• $[EQUIP BREAKDOWN DOLLAR AMOUNT] Equipment Breakdown

• $[EARTHQUAKE SPRINKLER DOLLAR AMOUNT] Earthquake Sprinkler Leakage
• $[MOBILE EQUIP DOLLAR AMOUNT] Mobile Equipment
• [INSERT ADDITIONAL COVERAGES]

Deductibles
• $[PER OCCURENCE DOLLAR AMOUNT] Per Occurence for Direct Damage, Except
• $[EARTHQUAKE SPRINKLER DOLLAR AMOUNT] Earthquake Sprinkler Leakage
• $[MOBILE EQUIP DOLLAR AMOUNT] Mobile Equipment
• [NUMBER] Hours Business Income Waiting Period

Coverage Highlights
• Special Causes of Loss
• Replacement Cost, except
• Actual Cash Value for Mobile Equipment
• Business Income based on Actual Loss Sustained basis
• [INSERT ADDITIONAL COVERAGE EXTENSIONS]

Coverage Limitations

Exclusions included, but not limited to
• Earthquake
• Flood
• Terrorism (if coverage rejected)
• Computer Virus and Computer Vandalism
• Pollution
• Mold, Fungi, Mildew, Microbe
• Governmental Action
• Employee Dishonesty
• Delay and/or Loss of Market
• Nuclear
• Biological and chemical contamination
• [INSERT ADDITIONAL EXCLUSIONS]

Subjectivities
• [LIST CARRIER CONDITIONS TO BIND COVERAGE IF APPLICABLE]

3. Commercial General Liability Insurance

General Liability Coverage
Insurance Company: [GENERAL LIABILITY CARRIER NAME]

A.M. Best Rating: [GENERAL LIABILITY CARRIER RATING]

Admitted/Non-Admitted: [GENERAL LIABILITY STATE ADMITTED OR NON ADMITTED]
Proposed Policy Term: [GENERAL LIABILITY EFFECTIVE DATE] to [GENERAL LIABILITY EXPIRATION DATE]

Limits

• $[BODILY INJURY AND PROP DAMAGE DOLLAR AMOUNT] Bodily Injury and Property Damage, Each Occurrence
• $[GENERAL AGGREGATE DOLLAR AMOUNT] General Aggregate
• $[PRODUCTS AND COMPLETED DOLLAR AMOUNT] Products & Completed Operations Aggregate
• $[PERSONAL AND AD INJURY DOLLAR AMOUNT] Personal & Advertising Injury
• $[FIRE DAMAGE DOLLAR AMOUNT] Fire Damage Liability
• $[MED EXPENSE DOLLAR AMOUNT] Medical Expense

Employee Benefits Liability – Claims Made Form
• $[PER CLAIM DOLLAR AMOUNT] Per Claim
• $[ANNUAL AGGREGATE DOLLAR AMOUNT] Annual Aggregate
• [DATE] Retroactive Date
• $[EMPLOYEE BENEFITS DEDUCTIBLE DOLLAR AMOUNT] Deductible

Exposure Basis
• [LIST CLASS DESCRIPTION BASIS OR EXPOSURE]
Coverage Highlights:
• Additional Insured – Vendors
• Additional Insured – Lessors of Equipment & Premises
• Additional Insured – Mortgagee, Assignee or Receiver
• [INSERT ADDITIONAL COVERAGE EXTENSIONS]

Coverage Limitations

Exclusions included, but not limited to
• Intentional Acts
• Workers Compensation
• Employers Liability
• Pollution (with Hostile Fire exception)
• Nuclear Energy
• Employment Practice Liability
• Intellectual Property Rights, including Trade/Patent Infringement
• Professional Liability
• Owned Aircraft Liability
• Watercraft (except for non-owned under 55 feet in length)
• Damage to property
• Damage to your work
• Damage to your product
• Asbestos
• Lead
• Terrorism (if coverage rejected)
• Professional Liability
• Aircraft products
• Discrimination
• [ADDITIONAL EXCLUSIONS]

Subjectivities
• [GENERAL LIABILITY CONDITIONS]

4. Business Automobile Insurance

Business Auto Coverage
Insurance Company: [BUSINESS AUTO INSURANCE CARRIER NAME]

A.M. Best Rating: [BUSINESS AUTO CARRIER RATING]

Admitted/Non-Admitted: [BUSINESS AUTO STATE ADMITTED OR NON ADMITTED]
Proposed Policy Term: [BUSINESS AUTO EFFECTIVE DATE] to [BUSINESS AUTO EXPIRATION DATE]

Limits
• [BODILY INJURY DOLLAR AMOUNT] Bodily Injury/Property Damage (Combined Single Limit)
• $[MED PAYMENT DOLLAR AMOUNT] Medical Payments
• $[UNINSURED MOTORIST DOLLAR AMOUNT] Uninsured Motorists
• $[UNDERINSURED MOTORIST DOLLAR AMOUNT] Underinsured Motorists
• $[HIRED AUTO DOLLAR AMOUNT] Hired Auto Physical Damage

Deductibles
• $[DEDUCTIBLE COMPREHENSIVE DOLLAR AMOUNT] Comprehensive
• $[COLLISION DOLLAR AMOUNT] Collision

Coverage Highlights
• Employees as Insureds
• Additional Insured – Lessor
• [COVERAGE HIGHLIGHTS ADDITIONAL COVERAGE EXTENSIONS]

Coverage Limitations

Exclusions included, but not limited to (cont.)
• Expected or Intended Injury
• Liability Assumed Under Contract
• Pollution
• Employers Liability
• Workers Compensation
• Racing
• War
• Movement of Property by Mechanical Device
• Bodily Injury or Property Damage Arising Out of Use of Mobile Equipment
• Economic and Trade Sanctions Condition
• Nuclear Energy Liability
• [ADDITIONAL EXCLUSIONS FOR COVERAGE LIMITS]

Subjectivities
• [CARRIER CONDITIONS TO BIND COVERAGE IF APPLICABLE]

5. Workers’ Compensation Insurance

Workers’ Compensation and Employers Liability

Insurance Company: [WORKERS COMP INSURANCE CARRIER NAME]
A.M. Best Rating: [WORKERS COMP CARRIER RATING]
Admitted/Non-Admitted: [WORKERS COMP STATE ADMITTED OR NON ADMITTED]
Proposed Policy Term: [WORKERS COMP EFFECTIVE DATE] to [WORKERS COMP EXPIRATION DATE]

Limits
A. Workers Compensation
• [INSERT STATUTORY OR DOLLAR AMOUNT] – [INSERT STATES COVERED]

B. Employers Liability
• $[DOLLAR AMOUNT BODILY INJURY BY ACCIDENT] Bodily Injury by Accident, Per Person
• $[DOLLAR AMOUNT BODILY INJURY BY DISEASE] Bodily Injury by Disease, Policy Limit
• $[DOLLAR AMOUNT BODILY INJURY BY DISEASE PER PERSON] Bodily Injury by Disease, Per Person

Schedule of Exposures
• [LIST CLASS DESCRIPTION PAYROLL]

Officer-Owners Excluded
• [LIST NAME TITLE]

Coverage Highlights
• Terrorism Risk Insurance Act Coverage
• [INSERT ADDITIONAL COVERAGE EXTENSIONS FOR WORKERS COMP]

Coverage Limitations

Exclusions included, but not limited to (cont.)

• Loss arising out of operations for which Insured has rejected any workers compensation law
• Liability assumed under a contract
• Bodily injury intentionally caused or aggravated by the Insured
• Fines or penalties imposed for violation of federal or state law
• Damages arising out of coercion, criticism, demotion, evaluation, reassignment, discipline, defamation,
harassment, humiliation, discrimination against or termination of any employee, termination of
employment, or any personnel practices, policies, acts, or omissions
Experience Modification: [PERCENTAGE]%

Subjectivities
• [LIST CARRIER CONDITIONS TO BIND COVERAGE IF APPLICABLE]

6. Commercial Umbrella Liability Insurance

Umbrella Liabilty Coverage
Insurance Company: [UMBRELLA CARRIER NAME]

A.M. Best Rating: [UMBRELLA CARRIER RATING]
Admitted/Non-Admitted: [UMBRELLA STATE ADMITTED NON ADMITTED]
Proposed Policy Term: [UMBRELLA EFFECTIVE DATE] to [UMBRELLA EXPIRATION DATE]

Limits
• $[DOLLAR AMOUNT PER OCCUR] Per Occurrence
• $[DOLLAR AMOUNT ANNUAL AGGREGATE] Annual Aggregate

Self-Insured Retention
• $[DOLLAR AMOUNT PER OCCUR FOR SELF INSURED RETENTION] Per Occurrence

Underlying Insurance Information
• [LIST COVERAGE INSURER LIMIT POLICY TERM]

Coverage Highlights
• Defense costs are in addition to limit
• Non-auditable
• [INSERT ADDITIONAL COVERAGE EXTENSIONS]

Coverage Limitations

Exclusions included, but not limited to
• Absolute Pollution
• Temporary Worker and Leased Worker Injury
• War liability
• Nuclear Energy
• Property in Your Care, Custody or Control
• Lead
• Fungi or Bacteria
• Terrorism (if coverage rejected)
• Violation of Information Distribution Laws
• Expected or intended injury
• Contractual Liability
• Asbestos
• Lead
• Professional Liability
• Aircraft products
• Discrimination
• [ADDITIONAL EXCLUSIONS]

Subjectivities
• [CARRIER CONDITIONS TO BIND UMBRELLA COVERAGE]

7. Premium Summary

Premium by Coverage

$[COMMERCIAL PROPERTY PREMIUM] Commercial Property
$[GENERAL LIABILITY PREMIUM] General Liability
$[BUSINESS AUTO PREMIUM] Business Auto
$[WORKERS COMP PREMIUM] Workers Compensation
$[UMBRELLA PREMIUM] Umbrella Liability

Insurance Program Premium
[INSERT PRICING TABLE]

8. Agency Disclaimers

Disclaimers
We are willing to discuss any of the items relating to the processing of your business at any time. We encourage full disclosure of our practices to assure you that we always act in your best interest.

A. Broker Disclosure

[COMPANY.Company] may receive compensation from an insurer or other intermediary as a result of the sale of insurance to you. The compensation received by [COMPANY.Company] may differ depending on the product, insurer, and/or other intermediary. [COMPANY.Company] may receive additional compensation from the insurer and/or other intermediary based
upon other factors, such as premium volume placed with a particular insurer or through a particular intermediary and loss or claims experience.

B. Communication

Any requests that you make to confirm, bind, or alter your insurance program through e-mail, voice mail, or other automated systems will not take effect until you receive confirming communication from your [COMPANY.Company] representative.

C. Claim Reporting Requirements
Changing market conditions have had an adverse effect on many carriers’ claim reporting terms and conditions. Many policy forms now include verbiage that severely restricts or negates coverage should a carrier not be immediately notified of a claim or potential claim. Refer to your policies for a more complete explanation of your carrier’s reporting requirements.

 

Signed by

__________________________        ______________

[COMPANY.FirstName] [COMPANY.LastName]

[COMPANY.Company]

 

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