Submission Best Practices: Preparing Your Proposal for Professional Liability Insurance (Errors & Omissions) Underwriters

Professional Liability Insurance (Errors & Omissions, or E&O) submissions are the single most important factor that determines both price and capacity from underwriters. A clean, well-documented proposal speeds binding, improves terms, and often reduces premium — especially in competitive markets such as New York City, Los Angeles, Chicago, Houston, and Miami. This guide gives U.S.-focused, underwriter-facing best practices to maximize your chances of favorable E&O placement.

Why a strong submission matters

Underwriters evaluate both risk and the quality of information presented. Incomplete or inconsistent submissions trigger follow-up questions, delay decisions, and increase perceived risk — which translates to higher premiums or restrictive endorsements. A concise, transparent submission signals good risk management and improves leverage with carriers.

See more on how underwriters assess submissions: How Insurers Underwrite Professional Liability Insurance (Errors & Omissions): What They Look For.

Pre-submission checklist (what underwriters want first)

Prepare these items before you start quoting — they reduce follow-ups and help underwriters price accurately.

• Completed application (signed and dated)
• Current declarations and expiring policy wording for continuity
• Five-year loss runs (or last available records) with detail on claims status
• Professional resumes or CVs for principals and key staff
• Sample client contract(s) and scope of services
• Risk management documentation: quality control, peer review, EHR protocols, disclaimers
• Cybersecurity summary (if services rely on client data)
• Financial statements (last 1–2 years) for firms with revenue exposure
• Licensing and certification lists by state

For typical underwriting questions to expect, review: Top Underwriting Questions on a Professional Liability Insurance (Errors & Omissions) Application.

Documentation: format and specificity

Underwriters want clear, verifiable, and concise documents.

• Use a cover memo that summarizes risk: company name, address (city/state), NAICS code, gross receipts, staff count, limits requested (e.g., $1M/$2M), retro date needs, prior acts coverage.
• Attach documents in PDF format. Label filenames clearly (e.g., “ABC_Architects_LossRuns_2024.pdf”).
• For loss runs, add a short, dated narrative for each closed/open claim explaining status and remediation.
• Redact personally identifying information where necessary, but do not redact claim descriptions or financial amounts.

Common pitfalls that raise red flags

Avoid these errors — they frequently slow or derail placement:

• Missing signatures on the application
• Discrepancies between revenue reported and tax returns/financials
• Contracts that impose unlimited liability or punitive damage clauses
• Poorly defined scope of services (creates coverage ambiguity)
• High client-concentration without documented oversight and controls
• Weak or undocumented cybersecurity controls where data handling is involved

If you need to reduce perceived exposures, see: Material Risk Factors That Raise Professional Liability Insurance (Errors & Omissions) Premiums.

Narrative template — what to include (250–400 words)

Use a short narrative to accompany your application. Example structure:

• One-line business description (what you do, primary clients, years in business)
• Key metrics (annual revenue, staff count, % revenue from highest-risk service)
• Primary controls (quality review process, professional licensure oversight, contract limits)
• Recent risk events and remediation (if any)
• Why you’re seeking coverage now and requested limits/terms

Example opening sentence:
"XYZ Consulting (NYC), founded in 2015, provides software integration services to healthcare providers; 2024 projected revenue $1.2M, 12 employees, 45% of revenue from three hospital accounts. Our QA program includes dual-code review, automated test coverage, and monthly executive risk reviews."

Pricing benchmarks and market examples (U.S. focus)

E&O pricing varies widely by profession, revenue, claims history, location, and limit structure. Below are typical market benchmarks for small-to-medium firms seeking $1M per occurrence / $2M aggregate limits in major U.S. metro areas (figures are illustrative ranges from market sources).

Notes:

• These figures are benchmarks, not quotes. Pricing for high-risk professions (e.g., financial advisors, technology firms handling PHI, architects in hurricane zones) can be materially higher.
• Location matters: a software consultant in Austin, TX may see lower premiums than a similarly sized firm in Manhattan due to jury exposure, litigation climate, and local regulatory scrutiny.

Negotiation and submission strategies to lower premium

• Request competitive bid rounds: many brokers obtain better terms by presenting comparable accounts side-by-side.
• Bundle coverages (e.g., EPLI or cyber) when buying from carriers that offer discounts for packaged solutions.
• Offer attractive deductibles or self-insured retentions if your cash flow supports it.
• Demonstrate strong loss control: documented QA programs, client contract limitations, mandatory indemnity caps.
• Consider multi-year stability programs or higher retroactive dates to limit carrier exposure.

For guidance on improving insurability before submission, see: Improving Your Insurability: Pre-Underwriting Steps for Professional Liability Insurance (Errors & Omissions).

Location-specific considerations

• New York (NYC): expect higher premiums and tighter contract scrutiny for financial, legal, and healthcare consultants due to litigation environment. Ensure contractual liability limits are reasonable.
• California (Los Angeles, San Francisco): data/privacy controls are critical post-CCPA; include cybersecurity summaries and vendor/third-party oversight.
• Texas (Houston, Dallas): construction and engineering exposures dominate; be explicit about project limits and subcontractor oversight.
• Florida (Miami): hurricane-related interruption and contractor oversight can affect architects/engineers — clarity on scope and geolocation of services is important.

Final submission checklist (quick)

• Signed and completed application
• Cover memo with requested limits and narrative
• Loss runs (5 years)
• Sample client contract(s)
• Resumes and licensure list
• Financials (if required)
• Risk controls & cybersecurity summary
• Expiring policy declarations and wording

Closing: speed wins

A professional, complete, and well-packaged submission reduces underwriter friction, shortens bind times, and often lowers premium. Use the templates and checklists above, include clear narratives, and be proactive about documentation. For more advanced underwriting topics and negotiating tactics, review resources like Material Risk Factors That Raise Professional Liability Insurance (Errors & Omissions) Premiums and the other underwriting-focused guides linked above.

External sources

• Hiscox: Professional Liability (E&O) overview — https://www.hiscox.com/small-business-insurance/professional-liability-insurance
• The Hartford: Errors & Omissions (E&O) Insurance — https://www.thehartford.com/errors-and-omissions-insurance
• Insureon: Cost guide for E&O insurance — https://www.insureon.com/errors-omissions-insurance/cost