Manuscript Policy

Example

“The pharmaceutical company required a manuscript policy because their experimental drug research created unique liability exposures that weren't covered by standard commercial policies.”

Memory Tip

Think 'Manuscript = Made to Measure' - like a custom-tailored suit, it's written specifically for your unique needs.

Why It Matters

Manuscript policies allow businesses with unusual risks to obtain insurance coverage when standard policies would leave dangerous gaps in protection. They enable innovation and economic growth by providing insurance solutions for new technologies, unique business models, and specialized industries.

Common Misconception

Many people assume manuscript policies are always more expensive than standard policies, but they can sometimes be more cost-effective because they only cover the specific risks present rather than paying for broad standard coverages that may be unnecessary. Additionally, some think they're only for large corporations, but smaller businesses with unique risks also use manuscript policies.

In Practice

A drone delivery startup needs coverage for their fleet of 50 autonomous delivery drones. No standard policy covers this emerging technology, so they work with a surplus lines insurer to create a manuscript policy costing $75,000 annually. The policy specifically covers drone crashes, privacy violations from onboard cameras, cyber liability for hacking, and product recall if the drones malfunction, providing $10 million in coverage tailored precisely to their unique business model.

Etymology

From Latin 'manu scriptus' meaning written by hand, referring to documents individually written rather than printed from a standard form.

Common Misspellings

More in insurance

Other insurance terms you should know

See Also