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Commercial Insurance Proposal Template: What to Include and How to Build One
A commercial insurance proposal turns a stack of quotes into a decision the client can make: what's being offered, how it compares to what they have now, what changed, and what happens next. A good one is short enough to read, specific enough to trust, and honest about what's still open. This guide gives you a section-by-section template, a five-step process for building a proposal from your quotes, a worked renewal example, and a checklist for the finished document before it goes to the client.
By Isaiah Hall · Published · Updated
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The template: what to include
Most commercial proposals follow the same structure. Use these sections in this order, and leave out any that don't apply to the account.
| Section | What goes in it |
|---|---|
| Cover letter | Who it's for, what it covers, the decision you need, and by when |
| Executive summary | Total premium compared to the current program, the biggest changes, and your recommendation in a few sentences |
| The client's business | Named insureds, operations, locations, payroll or revenue, and vehicles, as confirmed with the client for this proposal |
| Coverage by line | For each line: carrier and its financial strength rating, policy period, limits, deductibles, key forms and endorsements, and premium |
| Comparison to expiring | Side by side with the current program: what's the same, what changed, and why |
| Options | Alternative limits, deductibles or carriers, each with its price and trade-off |
| Notable exclusions and gaps | Exclusions or coverage the client might assume they have but don't, plus coverage you recommend they consider |
| Subjectivities and bind requirements | What the carrier needs before or after binding, like signed applications, inspections or loss runs |
| Payment options | Pay-in-full and installment options, and premium financing if offered |
| Disclaimer | That the proposal summarizes coverage and the policy governs; your agency's standard wording |
| Acceptance | Which option the client chooses, signature and date, and who to contact |
How to build a proposal, step by step
Confirm the client's current facts
Before you build anything, confirm what changed since last year: new locations, vehicles, payroll, revenue or operations. A proposal built on last year's description can be priced and covered wrong.
Gather the current version of every quote
Collect the latest version of each quote and set earlier versions aside. Note each quote's expiration date and any referenced forms that weren't attached; ask the carrier for those rather than guessing what they say.
Compare like with like
Line up each option against the expiring program by coverage: limits, deductibles and how they apply, forms, and premium including taxes and fees. Where periods or terms differ, say so instead of forcing a comparison.
Write the summary and recommendation
The producer explains the material differences in the client's context and makes the recommendation. A lower premium alone doesn't make an option better, so say what the client gives up or gains.
Review the finished document
Check the final, edited file the way the client will see it, using the checklist below. Every figure should trace back to its quote.
Worked example: a contractor's renewal
Sample Builders LLC, a general contractor, renews its general liability, commercial auto and umbrella on March 1. Here's the comparison section of its proposal.
| Coverage | Expiring | Renewal | What changed |
|---|---|---|---|
| General liability | $1M / $2M, $18,400 | $1M / $2M, $19,950 | Premium up 8.4% on higher reported revenue; limits unchanged |
| Commercial auto | $1M combined single limit, $500 collision deductible, $24,600 | $1M combined single limit, $1,000 collision deductible, $24,100 | Higher collision deductible lowers premium by $500 |
| Umbrella | $5M, $9,800 | $5M, $10,700 | Premium up 9.2%; the carrier now requires the auto limit to stay at $1M |
| Total | $52,800 | $54,750 | Up $1,950 (3.7%) |
The executive summary leads with the total: up $1,950, or 3.7%, mostly from higher revenue on the general liability. It calls out the one change the client has to decide on, the higher auto collision deductible, and offers the expiring $500 deductible as an option at its added cost.
It also flags the umbrella condition. If the client later lowers the auto limit to save money, the umbrella carrier's requirement wouldn't be met. That's the kind of detail a premium-only summary misses and a client remembers at claim time.
Before you send: checklist
Run these checks on the finished, edited document, not the first draft. Problems often appear only after edits.
- Every figure traces back to the current version of its quote
- Taxes, fees and any missing referenced forms are noted, not left out
- Every line of coverage in the program has its section, and no section was dropped in editing
- Open the final file as the client will: no blank pages, split tables or broken formatting
- Agency branding is intact, with no draft or test marks
- The proposal asks for one clear next step and doesn't imply coverage is bound
- Anyone your agency requires has approved this exact version
If you change your proposal template
Run the same sample account through the old and new template and compare the two outputs section by section. Instructions that conflict or repeat make it hard to tell which rule produced a result, so remove duplicates as you go.
Spend your time on the recommendation, not the formatting
Most of the time in a proposal goes into retyping quotes and lining up the comparison. Decla pulls the quotes and the expiring policy from your email and AMS, builds the comparison, and drafts the proposal from your agency's template. Your producer writes the recommendation and reviews every page before it goes out.
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Draft your next proposal with Decla.