Why responsibility for insurance rests with the board, and five questions every board should be able to answer.
Risk oversight is a recurring theme in our conversations with private equity investors and the boards of their portfolio companies. Insurance, however, is often delegated to the finance function and seldom examined at board level, until a significant claim brings it sharply into focus.
In this guest article, Steve Darrington, Chair of the Private Equity Advisory Board at Mactavish, explains why responsibility for making sure insurance will perform rests with the company and its board rather than its broker, and what the Insurance Act 2015 means for directors in practice. The article closes with five key questions every board should be able to answer, alongside commentary from Directorbank Director George Heppenstall on the points in the investment cycle when insurance deserves particular attention.
Click here to read the briefing.
Mactavish is an independent insurance advisor. They help the buyers of insurance understand the risks of their business and correctly characterise and disclose those risks during the insurance placement process. They also ensure that the policy wording is appropriate and that the insurance being placed is both fit for purpose and will perform (that is, pay out!) in the event of a relevant loss. Underwriters’ policy wording can often be Delphic and honed over hundreds of policies and claim events to tilt the scales in the insurer’s favour in a claims negotiation. Lastly, should a significant claims dispute arise, Mactavish can provide expert support in negotiating the best possible outcome for the insured company.
Whether the concern relates to property, employers’ liability, public liability, cyber, professional indemnity or directors’ and officers’ (D&O) liability insurance, directors who are not fully confident that their company is appropriately protected may wish to seek an independent review. Mactavish works with boards and finance teams to provide exactly that assurance.
