In the last decade, engaging the services of an insurance consultant in the business sector has become a very regular phenomenon. Many business owners commission an insurance consultant to manage their insurance portfolio in a professional manner in order to ensure adequate and wide cover. Furthermore, utilising the services of private loss assessors and experts to manage insurance claims – an area which was in the past exclusively controlled by loss adjusters and experts acting on behalf of the insurance companies – is also becoming increasingly widespread.
Nonetheless, many policyholders wonder why they need an insurance consultant or loss assessor / specialist to deal with insurance claims, since they perceive this to be the job of the insurance agent.
This perception is ostensibly logical and would apparently render insurance consultancy unnecessary. However both approaches do not in actual fact contradict each other. The insurance agent is indeed meant to be the main intermediary between the insured and the insurance company; is meant to be familiar with the insurance covers which the insured needs and ensure they have been arranged, and in the event of a claim he is meant to arrange for the insurance company to settle it. This is all fine for regular / small businesses insofar as sums insured and risk levels are concerned.
However, in the case of medium to large business, or those with an inherently high level of risk (industries such as paper, plastics, pharmaceuticals, gases and chemicals, construction and infrastructures), the situation is quite different.
The insurance market in Israel is considered to be highly developed and sophisticated even by western standards. The Israeli market does not suffice with standard policies used extensively around the world and has developed special policy wordings with unique extensions which are unprecedented worldwide. Tailor-made insurance specifications are deeply ingrained in government ministries, local authorities, regulatory institutions and major corporations. Resultantly, businesses which enter into supply contracts with such entities find themselves having to cope with complex insurance demands as a precondition to working with them. Similarly, due to sweeping environmental legislation to protect the public (such as the prohibition of using asbestos, sewage pollution prohibitions, anti-Pal-Kal construction laws etc.) the typical business owner finds himself operating in an environment in which he is exposed to various types of claims to a much greater extent than in the past. If we add the need for businesses to keep pace with global technological advances and state-of-the-art manufacturing standards, the importance of a comprehensive and adequate insurance portfolio becomes increasingly more relevant.
In fact, in the modern age no self-conscious entrepreneur would start operating a business without a professional and comprehensive insurance portfolio, providing it with a “financial chain of security” to protect the business against major losses / catastrophes which could jeopardise the stability of the business and even endanger its very existence.
From all of the aforementioned it becomes apparent that for medium to large businesses, or those with complex operations, a professional insurance portfolio is an essential component of the business activity which needs to be reviewed in a professional manner on a regular basis. In the same way as a business engages professional staff and various consultants such as accountants, lawyers, investment consultants, an insurance consultant forms a natural part of the team of professional external consultants of the business. The role of the insurance consultant, based on his professionalism and experience, is to analyse the risks impacting the business and make recommendations for mitigating them by implementing various means and processes (physical, procedural, contractual etc.), and devise a professional and comprehensive insurance portfolio whose aim is to “close the gaps” as far as practically possible and as far as the insurance market enables.
Furthermore, in the event of a major or complex loss or damage, insurance companies appoint an extensive team of specialists to act for them: loss adjusters, detectives, engineers, fire investigators, lawyers and others, and it is clearly evident that the insurance agent, no matter how skilful and experienced he may be, will be unable to confront all of them. It is hence very important that as soon as a loss occurs, the insured appoints an expert consultant to act on its behalf to deal with the claim and oversee all stages of handling the claim with the insurance company and the various parties it appoints. The claims consultant has the requisite know-how to ensure that the insured’s direct and consequential losses are presented in the most accurate manner, and he liaises with the insured, the agent and all of the experts appointed by the insurer until the claim is settled, thereby protecting the insured’s interests in the most optimal manner.
Only by appointing an expert claims consultant will the insured be able to obtain complete piece of mind with the knowledge that his interests are being protected optimally and that maximum efforts are being exerted to expedite the process of dealing with the claim and obtaining the full financial compensation due in accordance with the policy conditions.
