In the Lloyd’s insurance market, a slip is the underwriting submission (often an electronic slip) that a broker presents to underwriters to place a risk. The slip summarizes the key terms of coverage being offered, and underwriters sign their “lines” on the slip to indicate the percentage of the risk they agree to take.
In practice, the slip is a central record of the offer, acceptance, and subscription of the risk, with full policy documentation and wording finalized later.
What a slip typically includes
A slip usually captures the commercial essentials needed for underwriting and binding, such as:
- insured name and risk description
- coverage period, territory, limits, and deductibles/retentions
- key conditions, exclusions, and references to proposed wording/clauses
- premium (or rating basis) and brokerage/commission
- the lead underwriter and following syndicates, with each underwriter’s signed line (their percentage share)
How it fits in the Lloyd’s placement workflow
Lloyd’s is a subscription market. A broker may negotiate with a lead underwriter first, then take the slip to additional underwriters to complete the placement. When the slip is signed, it provides evidence of what was agreed and who is on the risk, even if final policy documentation is issued later.
This is similar to the concept of a binder in other markets, but the slip is specifically associated with Lloyd’s market practice and subscription placement.
Why it matters
Because the slip is the core “who signed what and on what terms” record, clarity on the slip matters for:
- coverage interpretation while the final wording is being prepared
- downstream documentation and premium processing
- claims handling, especially when coverage is subscribed by multiple markets