Professional indemnity insurance providers across the UK have been urged to aid in the economic recovery efforts by taking more serious steps to provide more adequate cover and reduce red tape.
Cowens Survival Capability, an independent business liability insurance broker, recently issued a statement detailing how two out of every three companies end up failing within a two year period after a significant insurance claim, brought about by delays in paperwork processing and policies that are inadequate.
Grant Scott, associate director for the public liability insurance broker, also issued a statement in which he commented that the two-thirds figure is unacceptably high, and that brokers share a significant burden as a sizable percentage of the responsibility for that figure is indeed theirs.
Mr Scott continued, going on to say that the only thing that would reduce the number of firms that failed amidst the aftermath of a significant insurance claim would be properly underwritten insurance policies that offered both a solid customer service experience and with a high attention to detail.
Mr Scott firmly laid the blame at the feet of brokers who habitually focus, to their clients’ detriment, on the number of premiums sold instead of ensuring that enough attention was paid to the balance sheet protection which helps to enable business continuity for those same clients.
Earlier in 2010, Cowens Survival Capability also issued a report in which it detailed how a dangerously high number of small and medium-sized business enterprises in the UK were availing themselves of any number of price comparison websites, which industry experts sometime caution against relying on to the detriment of SMEs, in addition to making their chief focus the cost of their cover instead of prioritising the selection of an appropriate level of cover for their companies.