Standard Form
What Is a Standard Form in Insurance?
A standard form is an insurance policy form that uses the same base wording across many insurers.
When a policy uses a standard form, the core language stays the same no matter which carrier issues it. Insurers build policies by starting with a standard form and then adding endorsements to modify coverage.
These forms are developed by industry organizations, not individual insurance companies. Common creators include Insurance Services Office, Inc. (ISO), American Association of Insurance Services (AAIS), the Surety Association of America (SAA), National Council on Compensation Insurance, Inc. (NCCI), and similar groups.
How Do Standard Forms Work in Insurance?
Standard forms act as the foundation of a policy. The base form outlines what’s covered, what’s excluded, and how claims are handled. Carriers then attach endorsements to add, remove, or change coverage to fit a specific business.
Two policies may look similar because they use the same standard form, but endorsements can still create meaningful differences.
Standard forms are common in lines like general liability, commercial property, workers’ compensation, and commercial auto.
What Is Standard Form vs Proprietary Form vs Manuscript Form?
Standard forms are like the off-the-shelf templates, proprietary forms are the store brand, and manuscript forms are custom-made.
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| Form | What It Is | Pros | Cons |
|---|---|---|---|
|
Standard form |
Widely used, prewritten wording shared across the market |
– Familiar to agents and adjusters |
– May feel generic |
|
Proprietary carrier form |
Wording created by a specific carrier for its own policies |
– Can bundle useful coverages |
– Harder to compare |
|
Manuscript form |
Custom wording drafted for a specific account |
– Very tailored to unusual or large risks |
– Rare for small businesses |
Why Do Standard Forms Matter for Small Businesses?
Standard forms help create consistency for agents and claims professionals, so they’re more familiar with how coverage works and can assist customers more effectively.
The baseline coverage in a standard form can then be altered with endorsements, allowing insurance companies to customize coverage to meet the unique needs of each customer.
Where Will You Commonly See Standard Forms Used?
Standard forms appear in many business policies:
- General Liability
- Commercial Property
- Businessowners Policy (BOP)
- Workers Compensation
- Commercial Auto
How to Use “Standard Form” to Your Advantage
- Ask which standard form your policy uses
- Request the form name or number
- Review the forms and endorsements listed on your declarations page
- Compare quotes at the form and endorsement level, not just price and limits
- Ask what endorsements change the base form and why
- Confirm how claims are handled under that form
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