If you are in business you are likely to think that having a claim brought
against you is bad news. Firstly, it can cost a lot of money, either directly
or through increased insurance premiums. But perhaps, the thing you hate, as
much as the cost, is the stress and confusion the claims-handling process can
bring, where you can begin with a feeling of a loss of control and end with a feeling
of uncertainty as to whether you have got the right result. These steps should
help put you back in control and should get you good value for money from your
premiums.
1_ Clarify the arrangements.
Be sure you know what to expect. In particular, be clear about the
decision-making process. Do you have any say in it? Do you want to? Wrong
expectations cause a lot of stress and unnecessary conflict. The following
points should all be agreed from the start:
It would be really good if you sorted this out before you received a claim,
so everyone knew what to expect
( The
appointment of solicitors. · The appointment of investigators. · Making
admissions of liability. · Making offers. · Payments, including any uninsured
costs you may have to pay. · Feedback, including lessons to be learned)
2_ Ask to be kept informed about the "Reserve",
that is the amount the insurers believe the claim
could cost in the event of its being paid. There should be a separate reserve
for legal costs. The reserve(s) should be reviewed regularly as more
information comes to light. Being informed of this helps prepare you for the
worst and should reduce the shock in the end.
3 Monitor progress.
Claims have been lost because each side was waiting to hear from the
other. Insurance company employees are human: they can forget to do things, or
think they have done them when they have not, like anyone else.
4_ if you do not understand a question,
or do not know
how to answer it, contact them and get clarification. Never leave it unanswered.
If the answer is "I do not know and cannot find out" tell them that.
It is their job to explain themselves, not yours to guess, especially when they
use jargon.
5_Always respond
as soon as possible, or within timescales set out, to all correspondence
from the insurers or their agents.
6 Challenge opinions or decisions.
If something seems wrong to you, ask for an explanation. If you are
still not happy, ask for a second opinion from within the company.
7_Always be sure to get feedback
as to lessons to be learned. Why did the accident
happen? Why were you to blame? What could you do to prevent it happening again?
Even if the claim was successfully defended, there might still be things you
could do better in future.
Above all remember it is your claim, and you have paid your premium (I
hope!) so get your money's worth. Your insurers should be glad to help you and
should not mind taking the trouble, as in the long run everyone benefits if you
take a real interest, so as to manage your risks, and your business, better. If
you are unlucky enough to have one who wants only a quiet life, free from
inquisitive clients, do them a favor, by taking your business elsewhere.
If you and your staff do not have the time to get involved to the extent
required, think about using an independent claims handler to do most of this on
your behalf, in accordance with your instructions. I say "most"
because it is your business, and you need to be aware of its risks, claims, and
how they are managed, but you do not have to make every 'phone call or handle
every piece of correspondence yourself.
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