Sheffield broker urges small businesses to check their policy details as many commercial claims remain disputed by insurers

23rd July 2014

IFM Insurance Brokers on Tapton House Road is urging South Yorkshire businesses to review their insurance programme to ensure they are properly covered.

This follows data to be released by insurance governance specialist Mactavish that reveals that half of all commercial claims are challenged by insurers. The research will also show that insurers take on average 35 months to settle a disputed claim with the final payment often a great deal less than the initial amount claimed. The average settlement time for a disputed claim was found to be almost three years. According to Mactavish one of the most common reasons why insurers dispute a claim is alleged breaches of conditions of the policy or where there had been unsuitable disclosure of information. Earlier this year, IFM successfully secured a £1m claim payout for Antiquity GRP's fibreglass factory on Parkwood Springs, which was gutted during a fire. Alister Smith of IFM insurance brokers, spent three months in negotiations with the insurance company to prove that the warranty breaches were not material to the loss, and that Antiquity had made a genuine claim. Mark Barlow, Managing Director of IFM Insurance said "This latest survey reveals that a worrying amount of businesses are taking unnecessary risks when it comes to insurance without knowing that the devil is in the detail. Having the right insurance programme in place can be the difference between remaining solvent and going out of business altogether. So if in any doubt businesses should talk with their local broker who can ensure that insurance cover meets the demands of the business and performs exactly as you would expect when you make a claim.