Public Liability Proposal Form For Property: Fill & Download for Free

Commercial property and professional liability are two completely different types of insurance policies, so the criteria considered by underwriters vary. Below, I'll provide a brief rundown of their main concerns and an application template for each.Commercial propertyCommercial property is a type of insurance purchased by most organisations in one form or another. It is designed to insure physical property at a specified address, however most policies allow multiple locations to be included if required.The types of property to be insured can include physical structures, such as a buildings, plant, machinery and equipment, but also any contents and stock kept on premises. Most property policies have a business interruption section as well, which allows an organisation to insure its revenue in the event that its operations are hampered by an insured loss.Generally speaking, underwriters will take the following into account:Industry of the clientLocation(s)Values to be insuredFire protection and securityBasis of settlement, e.g. replacement cost or indemnityClaims historyIn addition to risk specific information such as survey reports and on-site inspections, insurers will also consider their own experience with similar clients, as well as consulting mapping of potentially catastrophic natural events such as flood, fire, earthquake and cyclones.To gain a full appreciation of the information considered, it's worth taking a look at the QBE's industrial special risks proposal form.Professional liabilityProfessional liability, on the other hand, relates to insuring liabilities; specifically those which arise as a result of delivering professional services and advice. This type of coverage has traditionally been purchased by those that provide fee for advice, such as lawyers, engineers and accountants.Recent times, however, has seen many other industry professionals purchase liability coverage as well; particularly where their activities could somehow cause financial losses to a third party if their work is erroneous. Notable examples include management consultants, media and technology workers, marketing and design agencies and venture capitalists. The list really is endless.The type of factors considered include:Services performed and in what industriesAnnual revenue derived from each serviceNumber of company directors and their experienceNumber of staff and their experienceLevel of coverage requiredSize of deductibleGeographic location/jurisdiction of operationsPublic liability exposure (if professional liability is included as part of a combined PI/PL policy for doctors, health workers, veterinarians etc.)Claims historyIn addition to this standard information, underwriters may request copies of marketing materials and information on internal procedures. Particularly in relation to professional liability insurances, underwriters aren't typically afraid of getting their hands dirty by either investigating an application on the internet and/or meeting with them directly.AIG has a good example of a professional liability proposal form for management consultants.

This is actually a brilliant tactic for individuals and also businesses.I had to use it twice with my business in the UK and once personally.No one apart from a wealthy and vindictive person or company will bother taking a company or individual to Court to recover non existent money.Why, because it costs and it actually costs a lot to bankrupt a company or individual.Sadly this does not apply if you owe taxes or any kind of money to say the City for property taxes. They will just keep going.That is why if you have a business you really ought to put things into compartments.Your private wealth into one place and your business assets into another. Having a foot in a few countries always helps. There is a great book which I think Quoran Peter Taradash still sells that spells it all out.Just one important point though is most people leave it too late, the shit is hitting the fan and then they try and do something.It never works you will just compound the problem.So plan ahead.This is what I did in 1993 and a few years down the road saved my business.In the early 90’s due to my stupidity and then doing some study I educated myself in preparing accounts and business plans so had a good handle on what I was doing financially.I had noticed that companies that had assets and plenty of cash were very often targets for litigation over patent infringements, employment disputes and a whole raft of attacks that cost them a lot of money.In the UK a company has to file annual accounts and as it is a public record it is easy to see how much a company is worth.Now having read a lot of books sold by Peter Taradash under one of his pen names I started to realize that you needed to protect your assets from predatory attacks.As usual it took a lot of study to find out how to do this and make it work and I had to fire two accountants in the process as they could not understand what I was doing and why.Basically I split the business into three distinct parts and independant companies.Trading company doing all of the day to day operations and employing peoplePlant and machinery company owning all of the machines and vehiclesProperty company which owned and managed the premises we worked from.All of the shares in the three companies were then owned by a holding company and I obtained group tax exemption for inter company transactions.There were some obstacles involved mainly from the bank but after some negotiation I was able to accomplish the arrangement, send things into their proper places and tidy the loose ends up.The end result was that the trading company was still up and running but it had no assets apart from some stock and debtors and these were further disposed of by financing using a loan against the stock and a confidential invoice discounting facility for the debtors. Thus anyone looking to make a claim against the trading company would discover that it had zero worth anything.It also had a liability for leasing the plant and machinery and a lease to rent the premises further reducing its cash position going forward.I then formed a pension scheme and sold the building into it making the whole thing much more tax efficient and bullet proof.OK a few years later my company had a major problem and the threat of millions of £’s of claims against it, did it all work?Yes.Like all things it started with something simple, we were asked to make a flat profiled handle in the corrosion resistant alloy we cast into shape.The handle was going to be fitted onto a device on the decks of sailing boats.Our client was one of the largest marine fittings suppliers in the World and the orders were for 100’s of thousands so nice business. The handles were to be finished in a powder coated paint finish and it was all specified in the drawings we were supplied.What could possibly go wrong?The devil was in the detail, the type of paint. The drawing we had specified an epoxy polyester paint finish which was destined to quickly fade and peel off when subjected to strong sunlight. It should have been a full polyester finish which would have been fine.We made the castings and sent them off along with the drawing to be painted and then shipped them to the customer.Everyone was happy for around 12 months, then I was summoned to a meeting at the customers HQ.All the top guys were there and so were dozens of the handles all with paint peeling off and of course it was my fault because we had put the ‘wrong’ paint on.Well I had bought along the client file and pointed out that we had put the paint on as per their drawing and spec. I produced the copy we had on file. Then their head design guy pulled out his copy of the drawing and there at the bottom right in the box where amendments were made was a change dated two days after the date on my drawing showing the change in paint spec to full polyester.Q.E.D. all my fault then. We had been ‘sent’ the revised drawing and not acted on it so we had now to clear up the mess, I had been neatly stitched up of course as the drawing alteration had been back dated to cover up their mistake.Nice business as then their finance director was wheeled in with his calculations and proposal for how this was going to be sorted.A team of 10 guys would be assembledA private jet would be chartered for themThey would initially be sent to the Caribbean for 3 months as the majority of the complaints had come from there due to the strong sunlight and climateThen they would travel all over the World and replace every one of the 120,000 handles currently on customer’s boats.Initial payment from us £2 million and estimated final cost over £5 million, oh and please could we also replace all of the handles we had made.‘Houston we have a problem’Or did we? No they had a huge problem and had made me a bit angry that due to their mistake they were going to try and screw me. Well it was not going to happen and they were going to pay.I just told them straight off OK fine then I am off as I need to go and close up my factory. They all looked a bit puzzled so I just pointed out that as we did not have that kind of money we were going to close up and that was it, they could sort out their own mess.I stood up and walked out. Then I waited.Well of course they looked on the file at Companies House, value of my trading company just a few hundred £’s so they had a problem.One week later I had a delegation of the top brass at my factory.They had an order for 120,000 handles and the price was 0.I took them into my office and we sat down, I altered the order and put in a price of £4–50p per piece, 400% bigger than the original price we had been charging.I explained that the increase was to cover the stress and harassment I had been subjected to and if they did not like it they could go and get their handles made somewhere else. They left of course and then I waited.Just two days this time, they wanted their tooling back as was their right and had found someone else to make the handles. I called up our tool room guy and instructed him to give them their tooling.Two little bits of the mold was all they got as the rest of the tooling was owned by our plant and machinery company and it was around 3 months work to make it all over again. Plus we were the only company in the World who could cast that particular alloy.I waited.This time it was a bit longer, around two weeks and they sent their van driver with the bits of tooling they had taken and he also had an order for 200,000 handles priced at £4–50p each.So not a bad result .It took us around a year to make the handles and I insisted they pay C.O.D. so we had a good cash flow for a while.Preparation was the key though, none of what I had done with the company structure could have been done after disaster had struck.

So far I’ve read a lot of responses from left wing/liberal/progressive types, which I always find quite amusing when the question is directed at their opposites (I believe the proper term is called “projection”). That issue aside, before I start in on the California bashing, let me say that I actually am a fan of quite a bit of the state:Pebble Beach/Monterey Bay - Easily a top 3 golf spot in the country on top of being stunningly beautiful;Weather - I live in Texas. When I’m melting here and friends from San Diego send me pictures, jealousy runs high;Skiing - Another thing I can’t do in Texas, yet you have Heavenly, Bear Mountain, Squaw Valley, etc. You’re not Colorado, Utah, or Nevada, but you come in a solid #4 and quite a bit better than the sandy deserts of West Texas;Silicon Valley - this is perhaps what I struggle with the most out of everything. It, without a doubt, is the bastion of digital innovation - but by all accounts, California makes perhaps the least sense for such a place. Sure you have Stanford, but its not like there aren’t other equivalent universities and the business climate is exactly conducive as it is in other states. That said, it is a definite plus for the state;I like food - so Michelin Star restaurants - California has several, Texas none (most states none at that).So, it isn’t like California is a crap hole, by any stretch of the imagination. The issues that conservatives (and right leaning libertarians) have with the state fall into three broad categories:I. Economic PolicyThis is by far the biggest gripe. I’m an Austrian at my core and the amount of government regulation and intervention in the State of California is by FAR the highest of any state out there and governmental control of enterprise eventually always leads to failure (EVERY SINGLE time in history it has and will happen again in CA). Here are just a few examples:A. California has more debt than any other state, by an extensive margin if you actually include pension liabilities (which is another gripe of conservatives/right libertarians - you can’t just EXCLUDE liabilities that make your books look bad). By all accounts, using absurd metrics (such as an 11% ROI), it is underfunded by about 1.3 trillion dollars. [1] What’s amazing is the TOTAL state budget is under $200 billion. In other words, to fully fund the system you’d have to take the ENTIRE state budget for six years? (Yes this is a problem lots of places, but CA is the worst).B. Socialist and most left wing people complain of income inequality all of the time (as a libertarian I don’t see it as a problem, provided that there is success at all levels and there aren’t government policies KEEPING people poor). Yet this margin is widest in California. Did you know that there are about 550,000 homeless people in the US. [2] Yet over 130,000 of those are in CA?[3] California is a big state, but it doesn’t have 1/4 of the US population. Depending on how you measure income inequality, CA ranks between the worst and fifth worst in income inequality…which was previously not the case. Conservatives see liberal policies as the leading cause of these issues.C. It cannot be disputed that small businesses are fleeing the state (and larger businesses). California’s tax and regulatory burden are among the worst in the country. It is more expensive and harder to do business there, solely due to governmental policy, than almost anywhere else. Do you know how I open a legal lawn care business in Texas? If I want, I pay a few hundred bucks to form an LLC, file for a sales tax and use permit, open a bank account, hire people on a contract basis, and go to work. Some towns have rules about mowing before certain hours and on the weekends, but there really isn’t that much one has to deal with from the government.In California you have to get permitted at the state, county, and local level in most places. You have to apply for a contractors license at the state and local level. There are specific rules on workman’s comp, insurance, hiring/firing (it can be virtually impossible to fire someone)…and that’s just the basics. If you spread certain types of nitrogen fertilizer, that requires additional permitting and licensure. Jobs over a certain size and that adjoin public property frequently have to be specially permitted. There are proposed rules to govern what type of catalytic converters will go on lawn mowers (more expenses).And that’s a SIMPLE industry. Try real estate, finance, banking, or manufacturing. I wouldn’t dream of launching a manufacturing business in California. Why would you? There are much better options.Yet California pretends like it’s everyone else doing it wrong… I just don’t understand that.D. I could keep going on things from taxation to interstate rules that just needlessly complicate things (something ALL governments are adept at). But California’s economic policy is diametrically opposed to conservative and libertarian economic thought. It’s kind of like asking a pro-death penalty person why they think California’s anti-death penalty stance is wrong. Those are two fundamentally opposite positions.II. Social EngineeringA. Let’s start with immigration. For the majority of people in the United States, there needs to be a rational immigration policy. I don’t know a single person that thinks they can just pack up and move to ANY OTHER COUNTRY IN THE WORLD, plop down, and either work/go to school/get benefits/live or whatever you want to call it without having to go through some sort of immigration process. You’d be deported. Countries HAVE to have immigration policies or they cease being countries. (If you are a “one world” proponent, fine, but the question was what do conservatives dislike about California). Yet California, by all accounts, supports full open borders and zero immigration policy - and they’re quite public about it.This also hits the hypocrisy button again. I can remember the left wing outcry when Arizona ignored Federal law on immigration during the Obama years, but now that the Federal Government is demanding that California comply with that same law… they are flouting it. You can’t have it both ways just because “your guy” is not in the White House.Here’s my immigration solution. Go back to each state and they get to set their own rules. If Arizona wants to ban ALL immigration of all forms and California wants fully open borders, they can each do that, and it’s then the Federal government’s job to ensure that those policies work. So all the money the Feds currently spend on immigration would go toward helping each state ensure it complied with each other’s rules. So there would be no “illegal” immigrants in Arizona or California, as the Feds would help all of the “illegal Arizona” immigrants become “California immigrants.” Then everyone gets exactly what they want - funny though I’ve yet to meet a liberal that was on board with this.B. Public school failure. There is a plethora of reasons for this (some of which I’ve written on). But the government has failed at public education. That cannot be disputed. People in the US are less educated than a century ago, failure rates at schools (even with loose grading) are extreme, school violence is on the rise, etc. Yet school budgets are THROUGH THE ROOF.Let’s take LA for example. It’s school budget this year is $7.9B[4] This does NOT include any charges for underfunded pensions, healthcare, or other benefit shortfalls, but let’s pretend like that doesn’t exist. It also does NOT include food services, facilities acquisitions and construction, retiree benefits, and non-agency activities.[5] It similarly also does not include the cost of ALL debt (some is included) and “non school” administration costs. Even with these exclusions, LA Unified still runs at $14k/yr per student.[6] It is virtually impossible to find out the “actual” cost per student due to the intentional obfuscation of the budgeting process, but it easily exceeds $20k/yr. That’s the same thing as a VERY good private school. In other words, money is not the problem - government running the schools is.No I don’t have a solution; it’s a VERY hard problem. But MORE money and MORE government is not the solution, yet California believes it is - this is something that conservatives just oppose.III. ConstitutionThis is perhaps the biggest gripe conservatives and most libertarians have. I really don’t care how California runs their state. If they want the largest deficit, most homeless, and quickest dying retirement system, they can do that.But don’t force other states and people to adopt the same policies or pay for your failures.MOST conservatives (the majority of Republicans in congress excluded) simply want to be left alone - by the government, by California, by everyone, to just lead their lives. Nothing pisses us off more than someone we don’t know telling us what is best for us. Then expecting us to pay for it when they do it and it turns out to not be the best thing. To us, that’s arrogance personified.The Constitution was specifically drafted for the United States to be a Republic, where each state COULD do what it wanted, without interference from the Feds or other states. That system has been perverted. Most conservatives want to go back to that, most Californians want to entrench their system more.So, in conclusion…its not that we dislike California or people from California. We just dislike your beliefs about government and wanting to impose those beliefs on us and make us pay for it.If California said “this is what we’re doing, this is why it’s better, and you go do whatever you think is best Texas” I would LOVE the state. I don’t care you want to run the government differently… if it ends up being demonstrably better, I’ll campaign for change here (or move there). Just don’t expect everyone else to follow lockstep.Footnotes[1] CalPERS Is Shocked—Just Shocked—To Find Cities Reeling Under Growing Pension Debt[2] The State of Homelessness in America - National Alliance to End Homelessness[3] State Data and Contacts Map[4] Five things to know about L.A.'s school budget[5] Current Expense of Education[6] https://www.cde.ca.gov/ds/fd/ec/documents/currentexpense1617.xlsx