Here are the three main reasons we’ve heard from potential clients who have clearly needed our assistance but resisted. When we hear them we know one of the major risks facing this business is the quality of the Management.
Insurance is a valuable tool to soften the financial impact following a shock event. However, it plays no part in reducing a risk happening, only its impact. The other limitation is that after you have lost your manufacturing facility, or had a product recall, for example, which are typical insurable events, you are not supplying product to the market.
While you are rebuilding your factory, fixing your product quality problems, or dealing with your litigation your competitors move in and the marketplace moves on - without you. You may receive a cheque from the insurers (and insurers aren’t known for their generosity!) but you may not have a business. At the very least you’ll have many years of hard work ahead, rebuilding your business just to get back to where you were.