Insurance management is risk management which covers or avoids risk and uncertain loss. The acquisition of suitable insurance policies to maintain suitable loss prevention coverage and risk financing for the event project is required.
Effective insurance management involves the following procedures:
Exposures and Requirements
Determine the major risks or dangers that are likely to occur during the event. This can be attained by examining direct exposure to risks such as damage or loss of equipment and other assets. Determine the cost and the value of each asset and how to cover the cost. Decide whether to engage in contractual or statutory insurance coverage. Contractual insurance assumes the risk on behalf of another person, whilst statutory insurance includes the staff and equipment used by your organisation during the event.
Sourcing Providers
Research the types and availability of insurance providers. As indicated above, the appropriate insurance is dependent on the needs and the nature of the event. Assess provider qualifications and experience in the field of events and insurance as insurance providers have different areas of specialty. Seek advice from professionals in the field to ensure you engage the best insurance provider. Finally, ensure that the needs and responsibilities of both parties are clearly identified.
Selecting Appropriate Coverage
Insurance coverage can be very limited which is important to recognise. Specify the types of coverage to be procured to ensure the best cover. Some equipment requires increased insurance coverage and recognition that insurance covers may be limited. Best selection involves analysing different quotations before purchasing appropriate insurance coverage. The selection process is critical to determine the insurance cover you obtain.
Contractual Transfer
Determine liabilities and potential losses to be assigned to third parties. Identifying the potential losses helps acknowledge the weaknesses the insurance cover may have. Be specific when naming those insured so they are recognised appropriately. Finally, collect certificates of insurance from all the vendors and ensure all stakeholders obtain relevant copies of the agreements.
Policy Administration
Effective policy administration involves understanding policy terminology, conditions and obligations of the insurance contract. Obtaining advice from a professional helps understand the terms used clearly. Appropriate storage of the files is important, as is keeping a record of reference and understanding. Establish a schedule to ensure insurance coverage does not end without your knowledge. Keep track of all the insurance covers from different vendors. It is also important to comply with insurance policies and procedures.
Insurance management is critical in mitigating the risks that are unforeseen and unexpected. It is, therefore, important that the discussed procedures are observed and followed.
