Don’t Let Insurance Neglect Knock Out Your Big Business - Zupnick Associates

or when taken to litigation.”

What Kinds of Errors Can Cause Insurance Neglect

Neglect in this area occurs when an employer underinsures his or her employees. Regardless of whether it’s unintentional or intentional; it’s neglect. Here are some basic causes:

Lapses in Coverage Cause Insurance Neglect

Lapses in coverage, occur due to…

  • Late payment

  • Processing errors

  • Loss of insurance

  • Failure to enroll

Although large businesses can avoid exposing themselves this way, this type of neglect still happen in some cases.

Undisclosed Information can Cause Inadequate Coverage

This type of neglect can also happen when poor communication results in inadequate coverage. If a business reports incorrect figures or information about finances, safety, or employee health, it can end up with insufficient coverage. Failing to disclose potential risks to the insurer can result in uncovered catastrophes.

Inadequate Indemnity Periods

Big business need time to recover from accidents and lawsuits. Insured companies receive payouts during this indemnity period, but negligent businesses may not survive through the recovery, after the shutdown of profitable operations.

Big Businesses Can Become Overconfident

Big businesses often try to reduce expenses with higher deductibles, third party administrators, or insurance omissions. Overconfidence risks critical assets. It’s extremely difficult to accurately predict the potential cost of accidents and liquid asset recovery.

Big Businesses Also Suffer Indirect Costs from Insurance Neglect

Losses to businesses guilty of this type of neglect go beyond problems related to lawsuits, damaged assets, and healthcare expenses. Negligence can also result in …

  • Loss of licenses

  • Non-renewal of lease or contract agreements

  • Depreciated market positioning

  • Credit limitations

  • Reduced production efforts

  • State and federal non-compliance

Talk to Your Broker to Avoid Insurance Neglect

To avoid losses caused by insurance neglect in your big business, talk to your insurance broker about your current coverage. Ask if you have any gaps in your own protection and that of your employees.

Leave a Reply

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on reddit
Share on vk
Share on odnoklassniki
Share on tumblr
Share on digg
Share on skype
Share on stumbleupon
Share on mix
Share on telegram
Share on pocket
Share on xing
Share on whatsapp
Share on email
Share on whatsapp

learn how we
can help you.

Fill In The Fields Below
and we'll get in touch