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📋 '''Policy checking''' is the quality-assurance process through which an [[Definition:Insurance carrier | insurer]], [[Definition:Managing general agent (MGA) | MGA]], or [[Definition:Insurance broker | broker]] reviews issued [[Definition:Insurance policy | insurance policies]] to confirm that the documented terms, conditions, coverages, and pricing accurately reflect what was quoted, bound, and agreed upon between the parties. In a business where a single misplaced endorsement or incorrect [[Definition:Deductible | deductible]] figure can create a coverage gap worth millions, policy checking serves as a critical control point between [[Definition:Underwriting | underwriting]] intent and the legal contract delivered to the [[Definition:Policyholder | policyholder]]. The process applies across all lines of business — from personal [[Definition:Motor insurance | motor]] and [[Definition:Homeowners insurance | homeowners]] policies to complex [[Definition:Commercial insurance | commercial]] and [[Definition:Specialty insurance | specialty]] placements.

⚙️ Traditionally a manual, labor-intensive task performed by policy-checking clerks or junior underwriters, the process involves comparing the issued policy document against the original [[Definition:Quotation | quotation]], [[Definition:Binder | binder]], or [[Definition:Slip | slip]] to verify that named insureds, coverage limits, [[Definition:Exclusion | exclusions]], [[Definition:Endorsement | endorsements]], territory, effective dates, and [[Definition:Premium | premium]] figures all match. Discrepancies are flagged for correction before the policy reaches the customer. In high-volume personal lines operations, [[Definition:Insurtech | insurtech]] solutions and [[Definition:Robotic process automation (RPA) | robotic process automation]] have increasingly automated this review, using [[Definition:Optical character recognition (OCR) | optical character recognition]] and [[Definition:Natural language processing (NLP) | natural language processing]] to compare data fields across documents at scale. In [[Definition:Lloyd's of London | Lloyd's]] and London market specialty business, policy checking is embedded within the [[Definition:Policy production | policy production]] workflow and governed by market standards that define acceptable turnaround times and error tolerances.

💡 Errors caught during policy checking are far cheaper to fix than errors discovered at [[Definition:Claims | claims]] time. An incorrect [[Definition:Policy limit | policy limit]], a missing [[Definition:Additional insured | additional insured]] endorsement, or a wrongly coded [[Definition:Classification code | classification code]] can lead to [[Definition:Coverage dispute | coverage disputes]], [[Definition:Errors and omissions (E&O) | errors and omissions]] liability for intermediaries, and regulatory penalties for the issuing insurer. Robust policy checking also supports [[Definition:Regulatory compliance | regulatory compliance]]: many jurisdictions require that policy documents conform to approved wordings and contain mandated disclosures, and systematic review processes help ensure these obligations are met consistently. As the industry digitizes and moves toward straight-through [[Definition:Policy administration | policy administration]], the role of policy checking is evolving from a back-office clerical function into an embedded, often automated validation layer — but its fundamental purpose remains unchanged: ensuring the contract says exactly what it should.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Policy administration]]
* [[Definition:Underwriting]]
* [[Definition:Endorsement]]
* [[Definition:Errors and omissions (E&O)]]
* [[Definition:Robotic process automation (RPA)]]
* [[Definition:Policy production]]
{{Div col end}}

Definition:Policy checking - Revision history

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