Liability Insurance (Public Liability & Employers Liability) is only considered an inconvenient necessity until the time comes when an incident happens and you are looking at a substantial payment. This is when who you pick as your Insurer shows their true value.
It is true to say that when an incident occurs, the natural response from a potential claimant is to go to a no win no fee company and they will pursue you and your Insurer with vigour. You may not feel that an incident warrants a claim but your Insurer has to decide ‘what would a judge decide if this matter went to court’? Insurers also have to consider whether it is economically viable to defend the claim to the degree of defending the claim in court. Unfortunately we see these incidents quite regularly in the field of Security Insurance.
There can be long term implications for your insurance cover as you have to disclose any incident to a potential new Insurer and claims can take years to resolve. An Insurer will place what is known as a reserve on the claim and it is normally at the high end of the potential loss. The reserve applied can affect any potential Insurers consideration of the risk and some of the reserves applied do not seem justifiable. However, they are not going to reduce them freely as with higher estimates, the likelihood of the business moving to a new insurer is reduced.
A good broker should review any claims on your policy at least twice a year. Security Insured have agreed with their new scheme provider that outstanding claims, and the reserves attached thereto, will be reviewed every 6 months.
In addition, when you ask us to provide a quotation, if you can provide a reasonable amount of information regarding outstanding incidents, we will take a common sense approach with the reserves presented to us by previous Insurers.
Security Insured are pro active rather than reactive for our existing and potential customers. If you are not currently insured with us for your liability covers, talk to your broker and get them to review your claims history. It can save you substantial amounts on your premiums and enable you to move to a new Insurer who is offering better cover and potential savings on your insurance cost.
Why not have a chat with Security Insured, even if you are not currently insured with us, please feel free to give us a call.
Blog created by: Rob Hart – Security Insured