Over the last couple of years, insurance corporations have been dealing with law suits over policies that were issued many years back. Many a times this information concerning the policy, brokers and premiums is not available and the company has to pay millions in litigation. Insurance archaeology ensures that you are able to find these documents.
These law suits are mostly based on products which were made decades ago and turned out to be harmful. Most of these cases are from asbestos based compounds and so the environment. Asbestos has been found to be harmful to human beings over time. This information was not previously known until a recent scientific study. Companies that made these products are then subject to law suits over the same. When this happens, the old policy documents have to be located.
These policy documents can only be found by insurance archaeologists. Their work is to use any possible clues they can find to locate the tiniest shred of information regarding the policies. It is not always possible though and most times they go missing completely. It has been difficult to keep the old insurance policy documents over the past years.
Mergers and acquisitions have characterized the last few decades. The incorporated companies may lose most of their documents during this process. Relocation and downsizing also cost the companies these files. In addition, restructuring and file purging has also contributed. Another blame factor is the 1999 Millennium bomb where organizations sought to erase all their old 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.
These documents do not prove important only in the face of litigation. They can be used by corporations seeking to merge or go under acquisition as a method of audit. They give information about past policies that would cost the company in future. It is due to the legal requirement that liabilities be transferred to the next corporate successors. This gives insight into whether you are acquiring an asset addition or asset reduction company.
The work of insurance archaeologists revolves around being a detective, historian and an excavator. They have to go through broker records, locate and interview retirees and also the descendants of former employees. They are forced to go through countless files in ledgers and other accounting documents and government databases. They also have to sort through personal garages and attics of former employees. Sometimes these retired employees or descendants of those who are dead are in different states.
When you have been in business for many years and you cannot locate all your files it would be best to hire insurance archaeologists. This is going to save you millions of money in litigation. Besides, when undergoing a merger or acquisition let an archaeologist review the old policies of the target company. This will go a long way to protect your company from possible future law suits.
These law suits are mostly based on products which were made decades ago and turned out to be harmful. Most of these cases are from asbestos based compounds and so the environment. Asbestos has been found to be harmful to human beings over time. This information was not previously known until a recent scientific study. Companies that made these products are then subject to law suits over the same. When this happens, the old policy documents have to be located.
These policy documents can only be found by insurance archaeologists. Their work is to use any possible clues they can find to locate the tiniest shred of information regarding the policies. It is not always possible though and most times they go missing completely. It has been difficult to keep the old insurance policy documents over the past years.
Mergers and acquisitions have characterized the last few decades. The incorporated companies may lose most of their documents during this process. Relocation and downsizing also cost the companies these files. In addition, restructuring and file purging has also contributed. Another blame factor is the 1999 Millennium bomb where organizations sought to erase all their old 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.
These documents do not prove important only in the face of litigation. They can be used by corporations seeking to merge or go under acquisition as a method of audit. They give information about past policies that would cost the company in future. It is due to the legal requirement that liabilities be transferred to the next corporate successors. This gives insight into whether you are acquiring an asset addition or asset reduction company.
The work of insurance archaeologists revolves around being a detective, historian and an excavator. They have to go through broker records, locate and interview retirees and also the descendants of former employees. They are forced to go through countless files in ledgers and other accounting documents and government databases. They also have to sort through personal garages and attics of former employees. Sometimes these retired employees or descendants of those who are dead are in different states.
When you have been in business for many years and you cannot locate all your files it would be best to hire insurance archaeologists. This is going to save you millions of money in litigation. Besides, when undergoing a merger or acquisition let an archaeologist review the old policies of the target company. This will go a long way to protect your company from possible future law suits.
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