BIRMINGHAM, England — Airmic Ltd., the U.K. risk management association, on Tuesday launched a guide to help risk managers achieve greater coverage, contract and claims certainty.
The “Efficacy of Business Insurance” guide, released at Airmic’s annual conference in Birmingham, England, aims to help buyers successfully operate within the U.K. legal system and achieve the best possible coverage for their organizations, said Paul Hopkin, technical director of Airmic.
The guide advises risk managers to ensure that terms and conditions are agreed fully and in writing before policies come into force and that wordings be tested before policy inception.
This may, according to Airmic, mean that the renewal process needs to begin earlier.
Airmic also advises members to demand that their insurance policy be issued on the day of inception or before, Mr. Hopkin said.
This will bring insurance contracts into line with other contracts agreed by companies, said Chris McGloin, chairman of Airmic and vice president of risk management and insurance at technology firm Invensys P.L.C. in London.
There also is an increasing need for policy wordings to be reviewed by legal experts or insurance class specialists, Mr. Hopkin said.
He added that the guide was not only intended to ensure the efficacy of coverage bought in the event of a claim, but also to help buyers be sure that they have the best coverage that the market is willing to offer.