After recently doing and interview regarding Public Liability Insurance, I realised the ongoing issues we have as brokers. We have some sway over underwriters and claims, but at the end of the day it is their decision to decide how the claim is paid out or defended. When a recent security guard company had a claim, instead of trying to defend my client, the insurer opted to just pay it out, regardless of my clients lack of negligence or guilt for want of a better term. So when the renewal ticks over for the next period of insurance, the underwriter just turns around and says, your client has had an at fault claim and you need to pay us more this year and oh, by the way we are going to give your client a $50,000 excess, which a Small business is never going to be able to pay without putting the house up on mortgage.
It all hardly seems fair on the client, the insurers should have some vested interest in keeping the Ambulance chasers away and making sure they know each claim is going to be hard as hell to make and they are going to have to fight it and cost themselves a heap of money in the process. Instead of this, they choose a roll over campaign and then the client pays for it with an increased Public Liability Insurance premium in the next year and also their liability excess going up in some cases.
Public liability should protect the little guy and help him stay in business not just keep increasing cost for them every year. I know that there are clients out there that just don’t do the right thing or just are completely unprofessional, but surely there is a happy medium in the mix out there somewhere.