The ongoing plight of dairy farmers fighting to secure a profitable price for their milk proves just how tight margins are in the food & agri sector. In this lean operating environment businesses have to manage any large insurance losses well and prepare their claims professionally to have the best chance of getting back on their feet quickly. But to do that, they need to buy into the insurance process early and take some time to properly consider pre loss planning and survey work.
The old adage that time spent in preparation is never wasted is an unassailable truth when it comes to insurance, but the daily reality is that too many companies still believe the worst will not happen to them.
If you do not take the time to investigate what would happen in a loss, how your insurance policy would respond and the practical steps you’d have to take in preparing a claim, then it becomes very difficult to get the best out of your insurance cover and protect your ongoing operations.
At a superficial level pre loss work with a broker will identify the key people in the businesses that have responsibility for completing various tasks and providing particular information when proceeding with a claim. This is not a difficult task, but creating clarity in the roles and responsibilities that people have expedites a swift and assured response when problems arise.
Understanding Business Interruption
Looking past the practical considerations of who does what, there are more technical benefits in carrying out pre loss planning and survey work. This is particularly true in regard to the level of business interruption cover (BI) that is in place.
An important area to assess and the first is the time that a business would need to return to as close to what was planned in the business as possible, including reaching expected profit levels. Many BI policies have a standard indemnity period of 12 months after which the policy stops paying out, but is that really long enough for your company?
Download BI Claims Preparation Bulletin
For further information, please contact Jon Miller, Head of Regional Food & Agri Practice on +44 (0)121 626 7806