by Ian Gregory of MOP insurance brokers, Maidstone

Businesses can be presented with claims for long term ailments, such as industrial deafness or disease from individuals they employed years ago and who contend the problem either arose or was exacerbated during their period of employment.

Often, the claim may be pursued against several different employers if the individual had been exposed to a similar environment with other companies.

As part of our service, MPW will assist clients in tracing their Insurers before our appointment as their brokers.

We can report some significant successes enabling our clients to involve long cancelled and previously forgotten policies rather than fund such unforeseen claims from their own resources.

In one case, we were able to trace an Insurer who had provided cover in the 1950s. Our client was contacted by the employee's estate following his death as a result of asbestos related exposure arising over 60 years ago.

Their records were inadequate and we were able to recommend a specialist archaeologist to trace the insurers who then agreed a six figure claim settlement.

This example highlights the importance of maintaining records particularly for businesses that are long established.

The Insurance profession recognises that there will not always be such fortunate outcomes and the Employers Liability Tracing Office has now established a central register and will retain relevant details that Insurers will be obliged to supply to them.

Claims for industrial illness tend to be dealt with sympathetically by the courts. Even if the claimant had worked for several different employers, those currently trading would be left to share any claim. In the absence of appropriate insurance records, such businesses will be left to pay these claims from their hard earned reserves.

So how good are your insurance records?