Three Common Post Loss Property Liability Insurance Challenges

Regardless of size or location, every organization is exposed to risk which is why the role of risk manager is so important. Risk managers are tasked with the challenge of identifying and analyzing potential risks as well as implementing procedures to minimize their impact. In the best case scenario, the occurrence of a risk event does not result in a loss of any kind. Unfortunately, losses do occur and often it’s the steps you’ve taken pre-loss that put you on the fast track to recovery. Below we examine three common post loss insurance challenges and what you can do to avoid them.

Challenge #1: Data Accuracy
Understanding your organization’s exposure is critical for property risk analysis. This includes a complete property schedule as well as detailed property data (e.g. COPE, Secondary COPE). For organizations with many properties, this can become complicated as information can come from several sources. A system or process that integrates all aspects of property risk management and property stakeholders can be a great solution. Consider a system that lets you record regular property inspections and risk mitigation outcomes as well.

Challenge #2: Accurate Valuations
Accurate valuations are essential to ensuring your organization is properly insured. If your organization hasn’t had an onsite insurance appraisal in a while, you might be surprised when in the event of a loss you are faced with inadequate insurance coverage. We recommend partnering with a third party for onsite physical inspections every few years with value trending in the off years to keep property valuations as up-to-date and accurate as possible.

Challenge #3: Policy Exclusions
Familiarize yourself with the intricacies of your organization’s insurance policy. For anything not covered, be sure to have a solid understanding of what it might cost to replace in the event of a loss. If there is a gap between your organization’s basic insurance coverage and the cost to replace its property, you don’t have to be hit hard post loss. Consider gap insurance as a way to ensure your organization has the financial support it needs to rebuild quickly. Having all of this information recorded in a system alongside of your property data can give you a clearer picture of your coverage.

Taking action based on a solid understanding your organization’s exposure, the value of its property, as well as policy coverage and exclusions is a step in the right direction when it comes to being prepared for recovery efforts in the event of a loss. If you’d like to speak with an expert in more detail about how you can collect and track this information alongside detailed property information, feel free to contact us at any time,

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