Talk to clients about business practices

Make sure your clients’ business practices are in place if they want insurance to pay out reminds a leading provider of compliance and HR services, Gold Seal.

The management of business practices is always a hot topic for callers to Gold Seal’s business support hotline.

Sheila Baker, Managing Director Gold Seal commented, “In one particular case, a claim for fraud was limited due to the insured not having employment agreements and associated business procedures in place that clearly set out acceptable conduct. This is similar to deliberately setting light to your building and expecting the insurance policy to pay up. As we have often been heard to remark, sound business practices, in particular in the management of employees, are a risk management issue”.

Brokers should take every opportunity to advise clients that having sound HR practices in place will ease their way through a management liability policy claim. The payment of a claim will progress more smoothly if efforts have been made to ensure work practices are in place to assist in the mitigation of risk.

Gold Seal strongly recommends all brokers assisting clients with management liability, discuss the detailed terms and conditions of their policies and ensure that their business practices, systems, process and contracts are up to scratch. This will be a benefit to the organisation in its own right and doubly relevant should a potential claim occur.