Manuscript Policy
A custom-drafted insurance policy tailored to the specific risks of an individual insured, rather than using standard ISO or bureau forms.
What It Is
A Manuscript Policy is an insurance policy whose terms, conditions, exclusions, and coverage grants are custom-drafted for a specific insured or class of business rather than using standardized ISO or bureau forms. The policy language is written (or 'manuscripted') to address the unique risks, operations, and contractual requirements of the particular account.
Manuscript policies are common in specialty lines, large commercial accounts, excess and surplus lines, and international placements where standard forms do not adequately address the insured's risk profile. Carrier underwriters and their legal teams draft the custom language, often in negotiation with the broker.
While manuscript policies can provide broader or more tailored coverage, they also require more careful review because the non-standard language may contain unexpected limitations or ambiguities.
Why It Matters for Brokers
Brokers handling large or complex accounts frequently encounter manuscript policies. The ability to read, interpret, and negotiate manuscript policy language is a critical skill that distinguishes experienced commercial brokers. Because manuscript policies lack the familiarity and case law history of standard ISO forms, brokers must carefully compare the manuscript language against the client's needs and contractual requirements to identify any gaps or ambiguities.
Real-World Example
A large real estate investment trust (REIT) with 200 properties needs a property policy. The standard ISO commercial property form does not adequately address the REIT's portfolio-level deductible structure, master lease arrangements, and tenant improvement coverage requirements. The carrier drafts a manuscript property policy with custom definitions of covered property, a portfolio aggregate deductible, and specific coverage extensions for common area improvements. The broker spends 40 hours reviewing the manuscript language against the REIT's requirements before binding.
Common Mistakes
- 1Not thoroughly reading manuscript policies because they are lengthy, missing critical exclusions or limitations buried in the custom language.
- 2Assuming manuscript policy terms are equivalent to ISO forms when they may use different definitions or coverage triggers.
- 3Failing to negotiate manuscript language that does not meet the insured's contractual requirements before binding.
How brokerageaudit.com Handles This
Policy Checker analyzes manuscript policy language, comparing custom terms against standard coverage benchmarks and flagging deviations that may represent coverage gaps or unusual limitations.