The True Cost of Claims

By Phil Bowles

Owners and managers responsible for handling and procuring their business insurance often feel a twinge when the terms accident, claim, or loss are uttered. Often these terms mean some singular event must be managed, and afterward, the firm continues its regular business. However, managing claims as single events is short-sighted and overlooks the potential financial and operational fallout, which consumes time and resources far longer than anticipated. To further complicate matters, the best path for avoiding future incidents is often unclear. In working with clients in the water and utility industry, we have seen a trend over the last decade that threatens the financial health of organizations – failing to view claims from a holistic, long-term perspective by not considering all the related yet possibly hidden costs.