William Robb wrote: > And in who's world does a company not carry liability insurance as > standard procedure? > They are paying for it, whether or not they make claims. > It's a complete fallacy to think that companies don't take use of > liability insurance into account when they are setting up their > business plan. > Otherwise, why have it in the first place.
No business in their right mind doesn't carry liability insurance, even where it isn't compulsory to do so. The issue here is cost and in today's world where potential claims can be large, premiums are very high. To reduce this, most companies have a large excess or element of self insurance. One company I worked for had an enormous excess of way into 6 figures GBP. To reduce the costs further most excesses are layered with additional polices for higher sums to get better insurance premiums through lesser risk of claiming, i.e. the 2nd excess policy only picking up claims from say GBP1 million to GBP3 million and so on. How this package works to a parcel delivery company for continual lower level claims (although you would require the cover in the event of the loss of say, a distribution hub), would be interesting to note, but no Underwriter is going to spend more on paying claims and associated administration costs than he gets in premiums! Malcolm
