It is just two years since the Financial Conduct Authority investigated the way that SME claims are handled and determined that the process could be improved.
Since then, insurance companies and brokers have started to look more in depth into how they can stand out in the SME market and have been working on claims handling processes. However, it appears that SMEs are not paying the same amount of attention to matters such as this. This means that some SMEs might not be doing enough to ensure that any claim they make gets dealt with quickly and for the right amount.
One of the main issues is that many SMEs never consider that they might have to make a claim, so they are not prepared when it does happen. Industry experts have pointed out that many do not consider if they have the right insurance cover in place and often never take the time to prioritise their insurance to ensure that any loss will be covered.
For some companies, it could be that time and resources are limited because they are needed elsewhere in the running of the business, but taking the time to consider potential losses in the future is important. It means that both the SME and the broker can make sure that the right insurance is in place to cover them and the process of making a claim should be much easier.
Some companies never consider, for example, that they might need business interruption cover. Losses can be easily incurred when essential equipment needs to be replaced, so consideration needs to be given to covering loss of profit, among other things. This means that companies need to pay attention not just to the profits made in the past but the profit they hope to make in the future. A little work at this planning stage can save a lot of time during the actual claims process.