Many organizations have been through a rough patch in the last few years due to litigation resulting from policy documents issued years ago. However, since this is in the past, these documents bearing information about brokers and policies are not available. The unavailability of the documents may cost the company millions in litigation fees. The only way to avoid this is insurance archaeology.
These litigations are from products designed many years back which have now caused harm. For instance, asbestos products manufacturing companies have been subject to these suits. This is because of the wide use of asbestos in the past as there was no prior knowledge of their effects. In light of new scientific evidence to show that asbestos has been harmful these companies are sued.
Only insurance archaeologists are able to unearth these policy documents. They work is to leave no stone unturned as they investigate, examine, interview and locate. However, despite all the effort this is not always possible. Maintaining the past insurance policies over the years has been increasingly difficult for varied reasons.
One of the causal factors for this is that the past few decades have been characterized by mergers and acquisitions. In addition, companies may relocate or downsize and even employees cease to work for the company. Other reasons have been loosing files ether intentionally or non-intentionally and organizational restructuring. Besides, the 1999 the Millennium bomb caused companies to destroy so many documents.
With a probable costly claim, insurers will request for original copies of policy documents. When they are available they are proof of the existence of the policy. Due to this, companies take it very serious to find and also organize them as well as the secondary evidence coverage. If you do not think you are likely to face law suits then you do not have to look for them. However, it is best when you have them just in case.
This information is not only important during law suits. In the process of acquisition or in the event of a merger, it is prudent organizations dig up the old policies of the target company to know what you are getting into. This is because liabilities and policy agreements are transferred to corporate successors. When you assess the insurance coverage of a target company over times it means the difference between acquiring an asset building company or an asset draining company.
Insurance archaeologists carry many work titles as they work as detectives, excavators and people who study history. In the course of their work, they have to track past brokers as well as employees. Sometimes when they are deceased they have to look for their descendants and interview them. Archaeologists also have to read through past accounting documents as ell government archives.
Having been in business for decades will mean that not all documents can be traced. Therefore you will need the services of an insurance archaeologist to help you locate them. This will ensure great savings from law suit costs. To be on the safe side you should review past policy documents from target companies of possible merger or acquisition. This is an absolute company best practice and will save you many law suits.
These litigations are from products designed many years back which have now caused harm. For instance, asbestos products manufacturing companies have been subject to these suits. This is because of the wide use of asbestos in the past as there was no prior knowledge of their effects. In light of new scientific evidence to show that asbestos has been harmful these companies are sued.
Only insurance archaeologists are able to unearth these policy documents. They work is to leave no stone unturned as they investigate, examine, interview and locate. However, despite all the effort this is not always possible. Maintaining the past insurance policies over the years has been increasingly difficult for varied reasons.
One of the causal factors for this is that the past few decades have been characterized by mergers and acquisitions. In addition, companies may relocate or downsize and even employees cease to work for the company. Other reasons have been loosing files ether intentionally or non-intentionally and organizational restructuring. Besides, the 1999 the Millennium bomb caused companies to destroy so many documents.
With a probable costly claim, insurers will request for original copies of policy documents. When they are available they are proof of the existence of the policy. Due to this, companies take it very serious to find and also organize them as well as the secondary evidence coverage. If you do not think you are likely to face law suits then you do not have to look for them. However, it is best when you have them just in case.
This information is not only important during law suits. In the process of acquisition or in the event of a merger, it is prudent organizations dig up the old policies of the target company to know what you are getting into. This is because liabilities and policy agreements are transferred to corporate successors. When you assess the insurance coverage of a target company over times it means the difference between acquiring an asset building company or an asset draining company.
Insurance archaeologists carry many work titles as they work as detectives, excavators and people who study history. In the course of their work, they have to track past brokers as well as employees. Sometimes when they are deceased they have to look for their descendants and interview them. Archaeologists also have to read through past accounting documents as ell government archives.
Having been in business for decades will mean that not all documents can be traced. Therefore you will need the services of an insurance archaeologist to help you locate them. This will ensure great savings from law suit costs. To be on the safe side you should review past policy documents from target companies of possible merger or acquisition. This is an absolute company best practice and will save you many law suits.
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