While completing a routine risk assessment or enforcing proper hazard controls are smart business moves, your organisation’s risk landscape is in a constant state of change—making mitigation a little complicated. Fortunately, taking a closer look at past corporate losses can help your organisation prioritise risk management practices and prevent or reduce the impact of future disasters. Recent research revealed the global top 10 causes of corporate insurance loss over the last five years:
1. Fires and explosions — Securing a significant 24 per cent of losses, these claims can result from property fires and gas explosions.
2. Aviation collisions and crashes — Harsh landings, runway difficulties, and bird or terrain issues totalled 14 per cent of losses.
3. Faulty workmanship or maintenance — Whether it be the collapse of a structure due to faulty work or unsafe treatment by a practitioner, these claims amounted to 8 per cent of all losses.
4. Storms — Natural disasters, which can cause serious property damage, accounted for 7 per cent of losses.
5. Defective products — Lost business or time spent handling product recalls contribute to this claim, totalling 6 per cent of all losses.
6. Damaged goods — Destroyed, damaged or lost equipment and stored goods amounted to 5 per cent of corporate losses.
7. Machinery breakdown — Engine failure, generator problems and production line issues totalled 5 per cent of all losses.
8. Water damage — Between boiler leakage, flood damage and burst pipes, water-related concerns accounted for 3 per cent of losses.
9. Ship sinking or collision — Whether it be at the dock or at sea, collision incidents and sinking ships totalled 2 per cent of losses.
10. Professional indemnity (PI) — While negligence or misadvice accounted for only 2 per cent of global losses, this is the top cause of loss in the UK.
With PI being the top cause of loss in the UK, ensure you have proper PI cover, if needed. But, above all, your business needs robust cover for protection in any scenario. For insurance solutions, contact ICB Group today.
The content of this Profile is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly.
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