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Why you need the right level of cover

November 29, 2018

Sometimes your indemnity limit looks exaggerated. You can’t understand how your claims would ever get that expensive.

But all good brokers know that you can never fully predict the cost of an incident.

Take the famous ‘faulty bed sex claim’, for instance. If you haven’t heard this story in the recent press, it basically involves a woman suing a bed company after falling off one of their products and suffering life-altering injuries.

The bed company had around £2m in Public Liability Indemnity cover. However, a recent article from their insurer, Allianz, suggested that when you factored in the cost of the claim, the legal battle and the negative PR that came with it, the total figure would have approached £12m.

Luckily for the bed company, the claim was rejected in court.

But imagine if it had been successful. The retailer would almost certainly have gone out of business.

Now imagine that we’re not talking about beds, and instead, the topic is your event. Could your exhibition, festival, fun day etc afford to pay £10m in costs on top of your indemnity cover?

We often discuss underinsurance on our social media channels, but we’re usually talking about times when property has been insured for less than its full value.

But underinsurance can also mean not covering against worst possible scenario.

In the faulty bed sex claim case, £2m public liability should have been more than enough for any bed related injury. But it didn’t account for the size of this case or the story that exploded around it.

Not for one minute are we suggesting that you insure for every eventuality under the sun. But you need a broker who understands the potential impact of a claim.

Whether you’re a professional event manager, or you’re running an event as a one off, the level of indemnity you pay for could be the difference between success and disaster.

Leave yourself under-insured and you could be left with hefty bills that you just can’t pay. Set unrealistically high indemnity limits and you’re paying for cover you don’t need.

The only way to know whether you have the right level of cover is to speak to an expert.

Contact us today on 0844 488 9207.

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