Modern Proposals

[Break1630]

Hi everyone, I wanted to ask for some agent's opinions on the style of proposal you are using for Small Commercial. I'd classify Small Commercial as total premium size between $5,000 - $25,000. Are you using the carrier's proposals? I have heard of some agents purchasing "proposal software". Is anyone using that type of proposal and what are your thoughts? Are you using an agency created proposal, and if so, is it the same propsoal you use for large commercial accounts?

I am not a huge fan of the carrier's proposals because they include everything under the sun and look very "canned". I am brainstorming making my own proposal which would be unique, but could open up an E&O issue if I leave something out, put something not covered in, etc.

Constructive thoghts are appreciated.

-db

[Brenda H]

we use something along the lines of this document, and, as it is a WORD document, we can add to or take away from as needed for the customer.











INSURANCE PROGRAM PREPARED EXCLUSIVELY FOR:









Policy Dates





Prepared by:





















NAMED INSURED SCHEDULE:













































Insured Name
2007-2008 Renewal Proposal

Property Location Expiring Renewal
Address Building
Personal Property
Address Building
Personal Property
Equipment Breakdown Included Included
Valuable Papers
Computer Equipment
• $500 Deductible
• 80% Co-Insurance
• Replacement Cost Valuation
• Loss Payee

Coverage Enhancements:
• Accounts Receivable $50,000
• Business Personal Property Off Premises $25,000
• Business Income $25,000
• Extra Expense $25,000
• Employee Dishonesty $10,000
• Damage from backup of sewers/drains $10,000
• Debris Removal $25,000
• Employee Tool Aggregate $ 5,000
Max per employee $ 1,000
• Increased Cost of Construction $25,000
• Property of Others $25,000
• Outdoor Property $10,000
Max Any one tree, shrub or plant $ 1,000
• Outdoor Signs/Property $ 5,000
• Property In Transit $25,000
• Money & Securities $ 5,000

Insured Name
2007-2008 Renewal Proposal

General Liability:
$2,000,000 General Aggregate Limit (Other Than Products-Completed Operations)
$2,000,000 Products-Completed Operations Aggregate
$1,000,000 Personal and Advertising Injury Limit
$1,000,000 Each Occurrence Limit
$ 100,000 Fire Damage Limit (Any One Fire)
$ 5,000 Medical Expense Limit (Any One Person)
$ 1,000 Property Damage Deductible Each Claim

$1,000,000 Employee Benefits Liability -Each Employee
$1,000,000 Employee Benefits Liability – Aggregate
$ 1,000 Employee Benefits Liability Deductible – Each Employee

$ 500,000 Pollution Liability Aggregate Limit
$ 5,000 Property Damage Deductible Each Incident

Premium based on: Expiring Renewal

Contractors Permanent Yard payroll
Executive Supervisors payroll
Sub-Contractors
Includes:
• Blanket Additional Insured - Primary & Non-Contributory – As required by written contract
• Blanket Additional Insured – Completed Operations
• Additional Insured – Lessor
• Blanket Waiver of Subrogation – As required by written contract
• Aggregate Limit per Project
• Blanket 30 Day Notice Of Cancellation (10 days for Non-Payment)
• Additional Insured- Lessors of Equipment
• Land Improvement Contractors Extended Liability
• Limited Pollution Coverage – “Work Sites”
• No residential Exclusion


Insured Name
2007-2008 Renewal Proposal

Equipment:
$ Total Insured Value
$ 400,000 Leased/Rented Equipment
($500 Minimum & Deposit Premium)
$ 1,000 Deductible
Deductible:
$ 1,000 Equipment valued at less than $50,000
$ 5,000 Equipment valued at more than $50,000

• Actual Cash Value
• Includes Blanket Additional Insured – Lessors

Scheduled Equipment: Serial # Value:
0001 Ferguson Sheepfoot Roller $ 500
0002 480 ll Case Box Blade 8,000
0003 1991 Komatsu PC300LC-5 25,000
0004 D65E Komatsu Dozer 20,000
0005 Caterpillar Motor Grader Model 12G 65,000
0006 953 Caterpillar Loader 65,000
0007 1994 953 Caterpillar Loader 65,000
0008 1992 D37P-5 Komatsu Crawler Dozer 30,000
0009 1993 590 Case Loader/Backhoe 15,000
0010 1988 Caterpillar D7H Crawler Dozier 80,000
TOTAL




2007-2008 Renewal Proposal

Auto Liability:
$1,000,000 Combined Single Limit
$1,000,000 Uninsured/Underinsured Motorist
$ 2,500 Personal Injury Protection
$ 250 Deductible Comprehensive ($500 on Tractors and Trailers)
$ 500 Deductible Collision ($1,000 on Tractors and Trailers)
Hired Car Physical Damage Included
Options:
• Blanket Additional Insured Primary - As required by written contract - Included
• Blanket Additional Insured – Non-Contributory not available
• Blanket Waiver of Subrogation – As required by written contract - Included
• Blanket 30 Day Notice of Cancellation - Included
• Drive Other Car




Liability
Description: Serial # U/M,PIP Physical Damage
1994 Mack Truck Y $500 Ded Comp. $1,000 Ded Collision
1995 Ford F250 P/U Y $250 Ded Comp. $500 Ded Collision
1995 Trail King Trailer Y $500 Ded Comp. $1,000 Ded Collision
1997 Ford F450 Truck Y None
1997 Ford F250Pickup Y $250 Ded Comp. $500 Ded Collision







2007-2008 Renewal Proposal

Workers Compensation:
$1,000,000 Each Accident
$1,000,000 Disease-Policy Limit
$1,000,000 Disease-Each Employee

Class Codes and Annual Estimated Payroll

Payroll Description: Expiring Renewal
6291 Grading & Clearing of Land NOC $450,000 $500,000
8810 Clerical Office Employees $137,837 $125,000
8809 Executive Officers $151,000 $151,000
8227 Contractor Permanent Yard $ 84,965 $ 78,000
5606 Contractor – Executive Supervisor $121,200 $121,200
2006 Experience Modifier .85 2007 Experience Modifier .74

Includes:
• Blanket Waiver of Subrogation

Umbrella Liability:
$1,000,000 General Aggregate Limit (Other Than Products-Completed Operations)
$1,000,000 Products-Completed Operations Aggregate Limit
$1,000,000 Each Occurrence Limit
$ 10,000 Retention
Annual premium is flat, non-auditable
No residential exclusion
Provides excess limit over primary policies:
• Comprehensive General Liability
• Commercial Automobile Liability
• Employers’ Liability


2007-2008 Renewal Proposal



Coverage/Policies Expiring Renewal

Property $

General Liability

Equipment

Auto Policy

Workers Compensation
Physician Network
Difference
Modifier

Umbrella $

TOTALS

*Total represent non-network WC

Premium Payments:
• The General Liability & Workers' Compensation policies are Monthly Reporting. The Deposit Premium due
• The Property, Equipment and Auto policies are payable with a 20% Deposit Premium of Check payable to, balance in 8 Equal Monthly Installments No mo. service charge
• Umbrella Liability premium of is pre-paid, no installments available
• Total Down Payment


A. M. Best Co. ratings:
• A+ IX

[seajams]

Break,

Your agency management system should include a proposal system that generates from the info you have stored in it.

[Break1630]

We use Vision for our AMS and it does have a proposal function. But typically I do not enter the coverage information in there until the policy is issued. And even then, coverages are downloaded in from carrier.

[volstrike3]

I keep things simple by using the carriers proposal. I don't feel like a pretty proposal will sell an account so I try to differentiate myself in other ways. With small "main street" accounts it is all about the relationship and bottom line pricing and if you have the relationship... you can get the pricing you need to get or retain the business because they will give you every opportunity.

[pita3333]

A suggestion...while it is very possible that you will use word or something similar to create your proposal...you should not send out a word version via email. Convert to a pdf if you are going to email it to someone.

this way the document can not be edited, either on purpose or by accident.

[Brenda H]

You can also protect your word documents from editing with password protect

[cesparza]

Password protecting a word document does not prevent someone from changing the content. They can simply copy and paste the information in a new word document.

[mccluney]

All agent issued proposals should include a disclaimer similar to the following: "Please read your policy for all of the terms and conditons. The policy contains exclusions and other limitatations. Please call if you have any questions."

I also do not like to provide proposals from quotes produced by surplus lines brokers. The terms and conditions are usually very different from those of standard insurance companies. I always send their quote proposals with a cover letter.

Even standard companies very widely on coverages offered. You must be extermely carefull that "your standard proposal"
is modified each time you do a proposal.

Proposals take a lot of time to prepare. Most of my commercial clients do not care if they get a proposal. Also having a proposal makes it eaiser for other agents to quote against you.