Annual Billings Section
The annual billings section of the renewal application is an important piece of information for the insurance companies to determine your renewal premium.
If your firm has used the calendar year for billings in past applications, you should use the same calendar year format on the renewal application. If your firm used dates such as June 2023 to May 2024, then use the same time on your renewal application.
Direct reimbursables are not the sub consultants fees your firm pays out. Direct reimbursables are fees your firm is reimbursed for such as travel, printing, or administration fees. Most applications will include a separate line item for the pass-through sub consultant fees.
The insurance companies may ask for the projected fees from your firm. Always be sure to include these on the application, even though it is an estimate. The insurance company may use this number in the averages, or they will review it to find out if there are any anticipated changes for your firm.
If your firm has any feasibility studies, reports, opinions or master plans, include the fees or percentages on the application. Even if it is a portion of a project, for example if your firm provides a master plan as part of the project, include those percentages on the line item. These are considered lower risk services and will be rated separately from the billings. Also include abandoned projects if there have been any for your firm.
Most important is to be as accurate as possible on the billings section of the renewal application. The insurance companies do use these numbers as a part of the overall picture in determining the premium and it is best to have the numbers correct.
If your firm has any questions with regards to the billings section of the professional liability renewal application, please call, or email, your Professional Underwriter agent for assistance.