Manuscript Policy

Overview

A manuscript policy is a custom-written insurance policy created specifically for an individual insured or a particular risk. Unlike standard policies based on forms developed by rating organizations like the Insurance Services Office (ISO), manuscript policies are drafted from scratch or heavily modified to address unique coverage needs that standard forms cannot adequately serve. They are most common among large corporations, complex risks, and specialty insurance markets.

How It Works

Standard insurance policies use pre-approved forms (such as ISO's CG 00 01 for general liability) that provide consistent, well-understood coverage language across the industry. Manuscript policies depart from this approach by allowing the insurer and insured to negotiate custom terms.

The manuscript drafting process typically involves:

1. Risk assessment: The insurer evaluates the unique aspects of the insured's operations, exposures, and coverage needs
2. Custom drafting: The insurer's legal and underwriting teams draft policy language tailored to the risk
3. Negotiation: The insured's broker negotiates terms, conditions, exclusions, and definitions
4. Final binding: Both parties agree on the final language, and the policy is issued

Manuscript policies can be entirely custom or based on a standard form with significant modifications. They are common in areas such as:

• Large real estate portfolios with unique coverage structures
• Construction wrap-up programs requiring project-specific terms
• Technology and cyber risks where standard forms lag behind emerging exposures
• Excess and surplus lines markets where non-admitted carriers have flexibility to write custom coverage

Compliance Relevance

Manuscript policies present unique challenges for COI compliance:

• Non-standard language: Because the policy is custom, compliance reviewers cannot rely on standard form references to understand coverage scope. The actual policy language must be reviewed.
• Coverage uncertainty: A COI may look standard, but the underlying manuscript policy may contain exclusions or limitations not found in standard forms
• Endorsement tracking: Manuscript policies may not use standard endorsement numbers, making it harder to verify specific coverage features (additional insured, waiver of subrogation)
• Expert review required: Contracts with high-value or high-risk vendors backed by manuscript policies may require review by an insurance professional to confirm the coverage meets contractual requirements

Compliance platforms should flag manuscript policies for elevated review and maintain notes on any non-standard terms that affect compliance determinations.