15 March 2017Don’t let underinsurance undermine your organisation
A combination of ‘it couldn’t happen here’ attitudes with customers and lacklustre communication by the insurance industry means that underinsurance – where the claimed amount exceeds the maximum that the insurance policy can settle – is a common, almost hidden problem for organisations across the UK.
Left unidentified and uncorrected, this false economy can cause financial havoc in the event of a major claim – be it from fire, flood or negligence - leaving you with responsibility for cheques that your bottom line may not be able to cash.
Tedious and time-consuming it may be but the solution is forensic and regular assessment of exposures across your property, plant, machinery and other professional liabilities.
The watchwords are plan, review and repeat: and like all good habits, they eventually become second nature.
In this bulletin, leading insurance broker Arthur J. Gallagher outlines how underinsurance can manifest itself, its implications for your organisation and what you can do to eradicate its.