Help Protect Yourselves From Escalating Claims Reserves – Part 2
- 15 Apr 2018
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Last week the Security Insured blog focused on the importance of selecting a proactive insurance broker that regularly reviewed the claims made on your policy as well as how vital it is to always give full details of any incidents that do occur within the policy lifetime. All of this of course goes towards saving you money moving forwards.
This week I thought I would share with you all an example where, with no fault by the policyholder or insurer, a claim cost can escalated out of control, this really does drum home the importance of the above.
Our policyholder’s (CCTV installation company) ladder toppled over in the wind and damaged a motor vehicle which was 7 years old. The damage appeared to be in the cost region of £500 and our policyholder notified the Insurer within a week. However during that week, the owner of the car had contacted a credit hire company and were provided with a vehicle for the duration of the repair of their vehicle.
Consequently, due to weekly hire charges in the main, the claim was settled, in a very efficient timescale by the Insurers, at a cost of £7,500.
When I started discussing renewal terms with the client and told him what the claim had been settled for, he was astounded. Indeed he thought the Insurers had made an error.
However, everybody involved had done exactly what they needed to do in a reasonable fashion and still outside influences had exaggerated the cost.
The above is a good example of notifying your Insurer of a potential claims incident as soon as possible. Imagine if our client had left notifying the Insurer for another couple of weeks!
Security Insured’s message is don’t delay telling us if an incident occurs. Escalating costs cannot be avoided in certain circumstances but if we know about the incident quickly, we can do our best to mitigate a claim cost.
We make sure there are no undue delays by Insurers and in the long term, reduced claims payments result in reduced future insurance costs.
Blog created by: Nick Hems – Security InsuredBack to all
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