An illegible, incomplete or error loaded proposal form is unlikely to convey the impression you want to give to insurers. Answers should be accurate, clear and legible; typed where possible.

It’s not in anyone’s interests to collect unnecessary data so if insurers have asked a question, it’s because the answer you give holds some importance to them, and therefore your premium. If you can’t answer a question directly, provide an opinion or an estimate (making it clear that this is the case), with a note about any assumptions you’ve made.

It’s important that you remember your Duty to Disclose Material Information. These are details you know about your firm that could impact insurers’ views. The proposal form aims to discover those factors, but if you are unsure about anything, especially potential changes or ongoing situations, then take advice from your broker. 

The role of insurers is not to determine what you can or can’t do, but to consider the risk presented by your firm and charge an appropriate premium to reflect this. It’s worth remembering that they are not compelled to provide a quote to every firm, and you can influence their decision by showcasing your specialist experience, qualifications and appreciation of differing areas of risk.

For conveyancers, examples include:

• Buyer Funded Developments/Investment Schemes
• Building Safety Act  
• Work for overseas domiciles
• New builds
• Cryptocurrency 

Your note should explain

• The procedures you have in place that allow you to identify these exposures at the outset
• Your stance on accepting work, and your exceptions process if there are times when you might choose to accept this type of work
• The training and skills of the individuals/teams you would allow to undertake the work
• Any additional risk management or due diligence steps you carry out

Equally, even within conveyancing, insurers could have views on the levels of risk associated with different types of work – residential, commercial, remortgage, auction. Just because there isn’t a specific question on a proposal form, you can still show your points of difference by offering stats about the breakdown of your work or practice areas. 

If you have had a historic problem or difficulty, address this proactively. Potential examples include:

• disciplinary action or investigations by a Regulator
• rogue fee earners
• significant claims (either in frequency or value). 

Explain what happened and if applicable, your actions to prevent reoccurrence, highlighting:

• the role your leadership team has in monitoring claims and trends
• audits or scoping exercises to identify the extent of any wider problems
• amendments to processes, technology or culture
• preventative steps to re-educate staff and embed permanent firm-wide changes.

CLC practices are often at the forefront of new technology and the insurers we work with appreciate that this can be a significant risk mitigation tool.

Highlight the features that make a difference in your firm, such as: 

• dashboards considering fee earner caseloads, file progression times
• payments managed through password protected portals rather than emailed details
• digital ID tools
• use of AI tools, your perception of the risks and how they are managed.

Fees are a fundamental factor in calculating your premium and your proposal form should show the fees in your latest finalised accounts.

If the fees you declare on your proposal form are different to those in your accounts, explain discrepancies. Referral fees should not be excluded from the figures on your proposal form.

Other factors to consider/explain include:

• investments you’ve made which affect your profitability e.g. IT upgrades, succession plans,
• changes to your financial year end, resulting in non-standard insurance periods
• large one-off transactions. 

The legal sector is an attractive target, and we encourage firms to buy a cyber insurance policy so that they can access 24/7 helpline services. Whilst not compulsory, there is an expectation that staff will receive regular training and that you are investing in your IT security infrastructure. Be ready to showcase the following:

• Any claims or near misses and how you responded to those.
• The frequency and nature of your training. Where are modules sourced from; how are latest threats shared; who receives training; how is training directed, e.g. quarterly simulated phishing exercises for all staff with compulsory training for those who “click”.
• Restrictions you have built in to help prevent the risk of fraud e.g. no access from unknown IP addresses.
• Your ability to function if the IT infrastructure is impacted. Exercise in a Box - NCSC.GOV.UK provides free example mock cyber simulations for those wanting to test their own resilience.