Every good liability policy starts with a conversation – not a form. The activity assessment is the 20–30 minutes in which the risk picture of your business comes together: what you actually do, for whom, in what environment, and where you sit in the chain. This article sets out my questions in advance – and why each one matters.
- The point of the assessment isn't collecting data – it's the risk picture: that's what a good list of insured activities, a good limit and a good structure are built on.
- Five areas of questions: activities, client base, operating environment, chain position, history.
- You can get started without names or sensitive data – accuracy matters most when it comes to your activities.
Area 1: what do you actually do?
I'm not interested in the official industry classification code, but the reality: what a typical week looks like, where the revenue comes from, and what side activity exists alongside the main one. Why: cover stands or falls on the list of insured activities (see the multiple professions article), and a poorly described profile comes back to bite you at claim time. This is also the place to mention planned growth – anything you'd start within six months is worth building in now.
Area 2: who do you work for?
Consumers, businesses, public bodies? A couple of large clients, or many small ones? Is there a written contract, and what does it commit you to? Why: your client base shapes the size of the chains of loss you're exposed to (sizing your limit) and the contractual expectations placed on you (client requirements) – the limit and the structure are sized from here.
Area 3: what environment do you operate in?
Your own premises, or rented ones (the tenant liability article)? What equipment and machinery (the equipment and machinery article)? Do you work abroad (territorial scope)? Do you have employees (the article on employer's liability)? Why: these questions decide which extensions you need alongside the base cover.
Area 4: where do you sit in the chain?
Main contractor, subcontractor, or both? Do you bring in subcontractors, and do you ask them for a certificate of insurance? Why: chain position is the most dynamic part of the liability picture (the chain article) – and it's also where client and tender requirements tend to concentrate.
Area 5: what has happened so far?
Any claims, near misses, rejected claims? Is there a live policy, and what does it cover? Why: claims history is part of pricing – a cleanly presented history is a stronger position than one that surfaces later (see the settlement article on how cases close); and an existing policy is the starting point – you may not need a new one, just an adjustment (a policy review).
Once the assessment is done, the picture of your needs comes together (needs assessment and limit sizing), and from that, the comparison table of offers (comparing offers). To prepare, the quote request data list is all you need – and for the first conversation, a time slot: free consultation.
What I DON'T ask – and why
The boundaries of the assessment matter too. I don't ask for business secrets: client names, the specifics of contract terms, pricing details – the risk picture needs orders of magnitude and patterns, not sensitive data. I don't request health or personal data about your staff – headcount and job roles are enough. And I don't ask for the “perfect” data package upfront: the assessment is a conversation, not an exam – whatever's missing at first, we fill in along the way. The goal is a balance of trust: enough information to design good cover – and nothing more. That's exactly what distinguishes the assessment from what many people fear it will be: not an audit, but joint work.
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