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Proposal form guides
What each section of our surveyors' professional indemnity proposal form asks, why underwriters ask it, and where answers tend to go wrong.
Part of: Professional indemnity insurance at Apex
In short
Apex's online proposal form for surveyors runs in nine sections, from firm details and the fee split through cladding, block management and lending valuations to claims history and the declaration. Under the Insurance Act 2015 the completed form is the main part of the firm's fair presentation, so answers must be accurate and complete, and anything material that no question covers still has to be disclosed. The answers that most often cause problems are the fee split, the specialist questions and the circumstances question. When in doubt, disclose.
For a business insurance contract, the proposal form is the main vehicle for the duty of fair presentation under the Insurance Act 2015. Section 3 requires the firm to disclose every material circumstance it knows or ought to know, or enough to put the underwriter on notice to ask more, in a way that is reasonably clear and accessible. Answering only the questions asked does not automatically discharge that duty.
What the firm "knows" includes what its senior management and the people arranging the insurance know, and what a reasonable search would reveal. In a surveying practice that means asking every principal, and whoever runs valuation, building surveying and block management work, before answering.
Have to hand:
Our page on why the proposal form matters covers the general principle, and the surveyors PI insurance guide covers the cover itself.
Expect the full trading name with every subsidiary and trading style to be insured, the date the firm was established, office addresses with postcodes, your professional body (such as RICS, IRRV or CIOB) and trade association, and whether cover is needed for any principal's previous business activities.
What the underwriter is establishing: exactly who is being insured. The entities on the schedule need to match the entities that sign terms of engagement and issue reports. A report issued under a trading style or subsidiary that is not named on the policy is an avoidable gap.
The professional body answer matters because RICS-regulated firms must hold cover that meets RICS requirements, including its minimum policy wording. See our page on RICS PI requirements for surveyors and the RICS guidance on PII in the UK.
The predecessor questions exist because PI is written on a claims-made basis. Liability follows the work, so if a principal brings exposure from a previous firm, the underwriter needs the firm's name, its last year's fees, the reason the principal left and the position they held, and whether separate PI already covers that work. If it does, give the details; if it does not, say so.
The form asks you to list every principal, partner and director (anyone with ownership or significant decision-making responsibility), then give the number of principals, qualified staff, administrative staff and other staff. It also asks whether anyone for whom insurance is sought has ever been the subject of disciplinary proceedings by a regulator or professional body.
The balance of qualified to other staff tells the underwriter how much work is done under supervision rather than by qualified surveyors. Count consistently, and remember that a self-employed surveyor working under your name is part of your exposure even if they are not on the payroll.
The disciplinary question says "ever", not "recently". Disclose proceedings that were dismissed or that happened at a previous firm, with the outcome. A short factual note is far better than an omission that surfaces during a claim.
Here you split last year's gross fees across types of work, in whole percentages totalling exactly 100%, and give an approximate breakdown of the structures you work on. You are then asked whether you enter into contracts not subject to UK law, and whether you have ever done work where the end product is outside the UK.
The split matters more than the total. A practice doing mostly lending valuations presents a very different risk from one doing building surveys or project management, even at the same turnover. Take the split from your accounts or practice management system rather than from memory, and include work you subcontract out but remain responsible for.
The overseas question asks "ever", so a single instruction on a property abroad still counts. Contracts governed by another country's law can sit outside the standard cover or be priced differently, so the underwriter needs to see them.
The form asks for total turnover, including fee income, for three completed years plus an estimate for the year ahead; your five largest contracts in the last five years; and the three largest you expect to start in the next 12 months. A new start-up can leave the contract tables blank.
Turnover shows how busy you are. The largest contracts show how big a single claim could be. A small firm with one large quantity surveying or project management instruction carries an exposure its turnover does not reveal, which is why both are asked.
The estimate for the year ahead is a statement of expectation and needs to be made in good faith, not chosen to keep the premium down. If the coming year includes a step change, such as a large new client or a new service line, say so.
This section covers the areas underwriters look at most closely in surveyors' risks.
Cladding. You are asked whether you have been involved, directly or indirectly, in design, specification or other professional services for cladding systems; whether on buildings of four storeys or less, or five or more; whether all cladding and its components were non-combustible; whether specialist contractors were engaged and carried their own PI; and for full project details with addresses. Say what you did, on which buildings, in which years and in what role. Vague answers tend to attract wider exclusions. Our page on disclosing higher-risk building and cladding work goes into the detail.
Block management. If you manage residential blocks, the form asks for the units and postcodes, the extent of your fire safety responsibilities, whether you appoint third-party fire risk assessors who carry their own PI of at least £1m, how many blocks are five storeys or higher and how many three or four storeys (with the share of fee income), and whether any are being re-clad or are subject to a Building Safety Fund application. Describe your responsibilities as the management agreement sets them out.
Lending valuations. If you survey or value for lending purposes, you give average and highest single residential and commercial valuations, say whether you have done any drive-by, kerbside or desktop valuations in the last ten years, and confirm whether you have always complied with the RICS Valuation manual (the Red Book). Lender claims are often brought years after the valuation, which is why the look-back is long. If there have been departures from the Red Book, explain them. See the Red Book and valuer negligence claims.
Questions cover sub-contractors (the share of turnover paid to them, what they do, whether you need cover for them under this policy, and whether they must carry PI to a similar limit), any ownership of properties you manage or financial interest in another practice, any involvement in construction, property development or selling products, and controls around money.
Where you keep professional responsibility for a sub-contractor's work, your policy faces the claim if they are uninsured. The ownership and construction questions look for conflicts of interest and for exposures that fall outside a surveyor's professional cover.
The money questions (written references for staff handling money, the threshold for two-stage sign-off, holding client funds, and acting solely on email instructions to transfer funds) are about fraud and payment diversion. If anyone has ever paid out on an email instruction without independent verification, the answer is yes. See social engineering and fund transfer fraud.
Finally, the form asks whether every client signs your standard contract and whether each job has a written specification with variations recorded. "Usually" is not "always". If there are exceptions, explain them.
You give your current insurer, broker, limit, excess, premium, renewal date and retroactive date, then answer the questions that matter most: claims, circumstances, dishonesty and previous declinatures.
The claims question covers the firm, any predecessor and any past or present principal, and includes claims that were settled, denied or never paid. For each, say what you have done to prevent a recurrence.
The circumstances question most often causes trouble. It is not limited to formal complaints: it includes escalating disputes, withheld payments, and any shortcoming in your work that you cannot reasonably put right, even where the client does not yet know about it. Ask every principal and case lead in writing before answering, and keep the replies. If something turns up, it usually needs notifying to your current insurer before expiry, not just disclosing to the next one. See circumstance notification explained.
The dishonesty question asks about grounds for suspicion, not proven fraud. The declinature question covers any PI application declined, cancelled or accepted only on special terms. Answer both fully.
You choose a limit of indemnity, state any preference on excess, give the start date, and are asked whether there is anything else material an underwriter should know.
The limit should reflect the largest claim you could realistically face, any RICS minimum that applies to your firm, and any figure a lender or client requires. Check whether the limit applies to any one claim or in the aggregate, and whether defence costs sit inside or outside it. A higher excess usually lowers the premium, but it is a sum the firm pays on each claim.
The "anything else material" box is where a covering note belongs. If something material does not fit any question, put it here.
You give your full name and position in the firm. The person submitting is confirming, for the firm, that the answers are true and complete and that nothing material has been withheld, so read the declaration first. The duty continues until cover starts: if anything changes in the meantime, such as a new complaint or a letter of claim, tell us before inception.
Not necessarily. Section 3 of the Insurance Act 2015 requires disclosure of every material circumstance the firm knows or ought to know, or enough to put a prudent insurer on notice to ask more. If something material does not fit any question, it still needs disclosing, usually in the "anything else material" box.
Because these valuations rely on limited or no inspection, and lender claims are often brought long after the valuation date. Answer for the whole period, including work done by staff who have since left.
Answer the block management questions in full, including any re-cladding or Building Safety Fund involvement. If you advised on, specified or managed any cladding work, also answer yes to the cladding question and describe your role. When in doubt, disclose.
Notify it to your current insurer before the policy expires, not just disclose it to the next one. PI is claims-made, and a circumstance validly notified under the expiring policy is generally dealt with under that policy. Then disclose it on the proposal form as well.
It is a regulatory floor, not a measure of your exposure. Your largest instructions, lender panel terms and client contracts may all point to a higher figure. See how much PI cover a surveying practice needs.
Start your proposal online and save it as you go, or upload a completed proposal from your current broker on the first page. Or call 0117 325 0027.
Start your proposal Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances. It explains the kinds of question asked and does not reproduce any insurer's form or guarantee that cover will be available or on what terms.
