When your client has reported a claim it’s a good idea to provide insurers with details of the steps taken to prevent a similar claim occurring in the future. Details should include training instituted that will prevent another claim, changes to procedures made that will prevent another claim and any ameliorating factors about the claim that will convince the insurer that a similar claim will not occur in the future.
Factors insurers consider:
- Existing Risk Management items relevant to a claim which were in existence prior to the claim.
- Further Risk Management Actions Implemented from learning of the process of having a claim- prevention of future claims & acknowledgement of a change of process.
- Revised implementation of Risk Management processes is an imperative factor for insurers to consider offering renewal on ‘long tail’ business.
- Clients must make mention of their risk management procedures going forward and how they are going to implement procedures in order to mitigate losses occurring again.
- Clients should sell the positives of their business to their insurer.
The framework for individual clients/ businesses:
- Training & Development (Existing & ongoing- how frequent).
- Complaints register (Regularly kept up to date).
- Follow Up Systems (to stop issues/items falling through the cracks).
- Following a Process (Building a robust system which you & your staff adhere to & believe in. It should be trialed, tested & challenged on an ongoing basis).
- Experience & specific qualifications for the tasks (the essentials for being in business).
The comfort an insurer should feel after a claim:
It’s important to provide the Insurer with information to convince them why claims will not continue & it is anticipated the claim (reported by the Insured) was an anomaly & a one off.
Berkley Insurance Australia is a registered business name of the Australian branch of Berkley Insurance Company (ABN 53 126 559 706). Berkley Insurance Company is authorised by the Australian Prudential Regulation Authority as a general insurer to conduct new or renewal business.
The information and opinions contained in this document are general in nature. You should consider what insurance is appropriate for you or seek independent insurance advice.