Common claims pitfalls - how to minimise and overcome them

Claims are rarely given much consideration at the time a risk is placed, but giving some thought to claims and planning ahead can significantly reduce the problems commonly encountered once a claim is made. Use your broker and their claims team to establish a suitable set of arrangements in the event of a claim.

Agreeing with insurers on a panel of loss adjusters and other experts such as forensic accountants or lawyers that may be required if a loss occurs should be done at the placement stage, not once the insured is in the grip of a loss. Experts need to be familiar with the industry in which the client is engaged.

Make sure the loss adjusters and experts are aware of their appointment, have met the insured, and know what the parties to the contract expect of them in the event of a loss.

With sensitive business interruption losses, confidentiality often becomes a concern for the policyholder. Trying to get a confidentiality agreement agreed after the event adds delay to the claim as legal teams argue about terms. If confidentiality is likely to be a concern, deal with it at the time the risk is placed when time is not an issue.

Finally, use your broker to help you in meetings with the loss adjusters. A good claims advocate can significantly smooth the path to finalising a claim.