Presenting a hard-to-place liability risk: the records that make a submission readable

A readable submission is a fair one

Underwriters of unusual liability risks read many submissions and see problems quickly: vague activity descriptions, missing contracts, claims without dates. A submission that is organised and accurate does not guarantee terms, but it removes avoidable reasons to say no.

This guide concerns the records behind the presentation. It is not about steering insurers, hiding unfavourable facts or promising acceptance. For commercial contracts, the Insurance Act 2015 duty of fair presentation expects disclosure that is clear and accessible, which is a good discipline in any case.

Activities: what you do, for whom, and what you do not do

Write a description that someone outside your sector could follow. Split activities by type, with the share of turnover each represents, where they take place and who the customers are. Mention work you decline or have stopped.

Include higher-hazard elements plainly: work at height, hot work, hazardous materials, public events, foreign work or product supply. Explain changes, such as a new service. Check that the description matches your website, contracts and marketing; mismatches are noticed.

Contracts, limits and indemnities

Insurers often need to see the contract terms that create liability: indemnities, liability caps, warranties, required insurance limits and obligations to cover others. Provide samples of the main contract types and highlight unusual terms.

State the limits of indemnity you currently hold and the limits customers require. A requirement for a high limit does not mean the market will provide it. Explain any clauses that accept liability for third parties or for consequential loss, and say who on your side approves contract terms.

Territory, jurisdiction and turnover

Where work is done and where claims could be brought are distinct issues. Provide a turnover split by country or region, include exports and work by staff abroad, and mention contract clauses about governing law and courts. Territorial limits in policies need to match this picture.

Turnover should be consistent with accounts and forecasts. Show the previous year, current estimate and next year. If turnover is lumpy because of large contracts, say so. Round numbers invite questions; use figures taken from your records.

Subcontractors and supply chain

If others do part of the work, explain who they are, what they do, how they are selected and what insurance they must hold. Say whether you obtain certificates, check limits and renew them. Describe how you supervise their work and who owns the customer relationship.

Distinguish labour-only workers, self-employed specialists and companies. The description of working relationships may affect employers’ liability and public liability views. Keep records that show your process, not only your intention.

Claims and circumstances: a dated chronology

Prepare a chronology of claims and circumstances over the period requested, covering the date of event, date notified, what was alleged, amounts paid and reserved, status and outcome. Include notified circumstances that did not become claims, and incidents you know of.

State the cause in plain words and the change you made afterwards. If you do not know a figure, say so and explain how it will be obtained. Where a previous insurer gave reasons for declining or not renewing, include them. Keep this separate from marketing language.

Evidenced controls rather than slogans

Controls are persuasive when they can be checked: training records, inspection logs, certificates, method statements, audit reports and photos with dates. A statement such as “we take safety seriously” is not evidence.

Be careful to describe controls as they operate. Overstating them can undermine credibility and may prejudice the claim later. If controls are being introduced, say what is complete and what is planned, with dates.

Keeping the file current and consistent

A submission is a snapshot that becomes outdated quickly. Between presentation and inception, contracts are signed, turnover moves, incidents occur and staff change. Insurers expect to be told of material changes, and a file kept up to date makes it easier to do so. Appoint someone to maintain the master version and require changes to go through them.

Consistency matters across documents. The activities in the narrative should match the contract samples, the website, the accounts and the claims chronology. When a document conflicts with another, explain why. Check the final version with the people who actually run the work, because they will notice discrepancies that the office might miss. Keep a record of what was sent to each insurer and any follow-up answers, so that later requests can be answered consistently and nothing said informally contradicts the formal submission.

Finally, decide in advance how you will handle questions you cannot answer immediately. Say what you do not yet know, name who will find out and set a date. Insurers generally respond better to a clearly labelled gap than to an estimate presented as fact, and you avoid creating a record that has to be corrected later.

Preparing the people who will be asked questions

Underwriters sometimes ask to speak with the person who runs operations, not only with the broker. Brief the manager or director who will answer so that their account matches the written file. Walk through the chronology and contracts together, and agree who speaks about which topic.

Practise the difficult questions: the largest claim, the contract with the harshest indemnity, the area where controls are least developed. A candid, specific answer carries more weight than a defensive one. If a survey is requested, arrange access promptly and give the surveyor the same documents the insurer has already seen.

What the presentation cannot do

A good presentation does not game insurers or guarantee that the risk is acceptable. Some insurers will decline regardless; others will offer terms with restrictions. Your broker can discuss options and tell you what the market is saying, subject to insurer appetite.

Keep a version history of what was sent to whom and when. If the facts change before inception, tell the broker. Oak can help organise the file and review it for gaps; nothing here is legal advice or a guarantee of cover.

Related guides

• Risk presentation · 5 min readDeclined, cancelled, not renewed or avoided: telling four insurance events apart
• Property · 5 min readCommercial property underinsurance: why rebuild value matters
• Waste & recycling · 5 min readWaste and recycling renewals: preparing the site evidence an underwriter will ask for