To derive the maximum benefits from an insurance program it is important to establish uniform procedures to be adopted in the event of insured losses.
There are three principal factors that will greatly influence claims negotiations:
1/. The conduct of large claims should be the responsibility of senior personnel with authority to negotiate settlements and ensure compliance with policy conditions.
2/.Immediate notification of incidents likely to give rise to a claim is critical. Failure to report a claim can prejudice your right to claim and late notification is by far the most prevalent basis for denial of liability by Underwriters. The need to comply with this requirement should be fully explained to all of your personnel.
3/. Whilst not always expressed in the policy, an implied obligation is placed upon an Insured to act with due diligence to avoid or diminish any loss, damage or liability.
Lack of consideration of the interests of Underwriters can therefore be detrimental to your ability to recover under your policy.
If in any doubt as to: