How Poor Asset Management Can Affect Your Insurance Claim

Asset tracking and data management is a hugely important factor in the running of any successful business; it can also have a major influence on your insurance premium and how insurers react to a claim.

The level of your companies asset tracking will definitely affect the premium of your insurance package, but can also have an impact way beyond the premium itself.
Let’s say for example that a fire breaks out in your offices and you need to make a claim; a good insurance assessor will immediately look at your asset management information. If your asset records are inaccurate or out of date, the fire will just end up being the start of the problems. Let’s say for example the assessor spots a computer on your register that is a decade old - as he knows it’s unlikely you’ll still be using such a machine, he’ll immediately have grounds to challenge every single item on the register. If the assessor spots something he thinks wasn’t being used but you’re still trying to claim for, the chances of them paying out fully is massively reduced. In this instance, the assessor will check the existence, condition and location of every single item on the register, which will delay any payout considerably. As most business owners will imagine, this can be a very difficult outcome when all the company wants to do is get back to business as normal.

So how can you avoid this eventuality and speed up the payout of an insurance claim? The best way (in fact the only way) would be to provide assessors with accurate, easily verifiable asset registers. The best way to do this is to already have specialised asset management software that allows easy, automated and transparant asset tracking throughout the business. You can then provide insurers with an accurate, up to date asset register intergrated with location information and descriptions. This will result in a much smoother and quicker insurance claim, meaning you can get back to business as usual far more quickly.