Insurance Policy Documentation

What is an Insurance Policy Documentation?

Insurance policy documentation comprises information on the various insurance policies entered into by your company including terms and conditions.

Insurance policy documentation comprises details of the agreements between your company and the insurance agencies including:

• Policy Details: Policy number, nature of each policy (such as accidental and medical) and start and end dates of each policy
• Insured and Insurer Details: Names and address of your company and the insuring agency, along with contact details of your relationship manager
• Assets Insured: Details of the assets insured by your company and the risks associated with them
• Coverage and Premium Amount: The amount covered by each policy and the annual premium that your company has to pay to ensure that the policy remains active
• Terms and Conditions: Specific provisions, rules of conduct, duties and obligations that your company must comply with
• Policy certificate: The legal document confirming the holder and status of the insurance policy

Why is Insurance Policy Documentation important for business today?

Having insurance policy documentation enables your company to:

• Assess details of various company insurance policies, including the nature of each policy, the amount for which you are insured and any premium which need to be paid
• Comply with provisions, rules of conduct, duties and obligations specified by the insurer
• Track insurance start and end dates and pay your fees on time
• Assess the overall risk exposure of the business having regard to the impact of insurance policies
• Determine where any gaps may exist in the current insurance coverage
• Understand how to make a claim under each policy

Why is Insurance Policy Documentation important for an event tomorrow?

Insurance policy documents are important for an event tomorrow, as they help potential investors to:

• Evaluate the assets insured by your company and the risks associated with them
• Gain visibility on the number and nature of your company’s insurance policies
• Determine the frequency and cost of premiums associated with each policy
• Assess various legal obligations mandated for your company and evaluate compliance with them
• Assess the financial compensation that your company is entitled to receive in the event of a loss
• Evaluate whether the insurance policies opted by your company are enough to cover any potential loss, and assess the need to purchase more policies

Pros of addressing Insurance Policy Documentation

• Provides potential investors with a clear picture of the insurance coverage held by the company
• Reduces the risk of potential policy lapse, or cancellation by tracking renewal dates and complying with terms and conditions
• Assists in creating business continuity and disaster management plans accordingly
• Enhances transparency between your company and insurance agency by documenting the details of the policy, and its terms and conditions
• Acts as a legal proof of ownership of an insurance policies in case of any potential dispute

Cons of not addressing this topic

• Adds additional work for potential investors to sort through insurance policy documentation themselves in order to obtain a clear picture of the overall coverage
• Increases the risk of policy termination due to limited visibility of policy’s terms and conditions, and your company’s compliance with them
• Makes it difficult to claim policy benefits due to unavailability of insurance certificates
• Increases your company’s inability to track expiry dates and maturity date of your insurance policies