Four Steps to Take When Managing Complex Insurance Claims

The time required to manage complex claims can catch businesses off guard. Here are four steps to help manage complex and disputed insurance recoveries.

The time and resources required to successfully manage complex claims can catch businesses off guard during times of crisis. However, when there is a potential exposure that could be covered by an insurance policy, early engagement and ongoing cooperation with insurers can make the path to indemnification significantly smoother. 

Here are four steps businesses can take to resolve complex and disputed insurance recoveries.

1. Identify available insurance cover

Soon after a loss, a company should identify all the insurance policies that could be responsive, not just the most obvious ones, and make the appropriate notifications.

If multiple policies are likely to respond, a business must try to put in place a protocol to manage the competing interests of different insurers. If a double insurance issue arises, efforts ought to be made to resolve it early. If this is not feasible, companies can look for an interim solution that allows smooth management of the loss or claim.

Meanwhile, a company needs to make sure its board, and anyone dealing with the loss, is aware of the insurance implications.

2. Contact your broker

A business should liaise with its broker soon after a loss occurs to ensure that notifications are being made at the right time, in the right format, and contain the right information.

If notifications are made promptly, a company is less likely to inadvertently breach policy terms and conditions requiring collaboration and/or consent, while insurers will be more able to make decisions on coverage in a timely fashion.

3. Collaborate with brokers and insurers

A company is advised to work proactively with its broker and insurers when dealing with a claim. Ensuring that information is shared and consent is sought, where needed, can minimise coverage challenges further down the line.

Insurers hate surprises. A claim proceeds far more smoothly if the insured continues to inform the insurer of significant developments.

Companies are also urged to share information with insurers regarding the reasons for any proposed decision on strategy, and to keep all lines of communication open, whether via brokers, lawyers, adjusters, or direct to the insurer. This way, any concerns can be dealt with quickly and effectively.

4. Consider using experts

Engaging a good team of experts can help guide a business in handling a loss and making the claim for indemnity. 

Where a loss is large or complex, a company may want to consider engaging experts to support it in managing the insurance claim and ultimately finalising a recovery.

A business should consider what team is needed and nominate one person to handle the claim and manage the process.

Towards a speedier resolution

Complex insurance claims are rarely solved overnight. Insurers will need to assess and quantify a claim, just as businesses will need to quantify their losses. Working with insurers from the outset, engaging a strong team of experts, while making the most of the wider commercial relationship with an insurer, will help businesses realise a speedier resolution to their claim. 

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