RISK MANAGEMENT
• Include a footer with the date on each page of the proposal so that you cannot take one page out of context .
• Avoid trying to reproduce the policy by listing specific coverages . Reference the cause of loss form ( i . e ., Special Form CP 10 30 ) but never use terms such as “ all risk .”
• Avoid listing exclusions . Listing three or four “ important ” or “ notable ” exclusions may get you in trouble when a claim gets denied by an exclusion you did not list . If you must draw attention to a specific exclusion , state “ but not limited to the following exclusion ( s ).”
• Consider including a page for optional coverages quoted / suggested . Some agencies use that page to
have the customer sign off on the ones refused .
• When the proposal includes liability coverage , always have the statement " higher limits may be available . Please notify us if you would like to secure a quote for higher limits .”
Ask management if you can head up a team to create updated proposal standards . I hope that these suggestions help you in that endeavor .
Mary LaPorte is a consultant and educator with a strong background in Errors & Omissions loss prevention . Forward your E & O questions to marylp @ lpinsuranceconsult . com . � 2021 LaPorte Consulting , LLC . All Rights Reserved
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