Nearly one in four CEOs don’t know what claims or eventualities their business is covered for in their commercial insurance policy, according to The Protection Gap , a survey commissioned by Abbey Legal Protection (ALP).

When questioned about whether a variety of potential claims would be insured for in their work place, significantly, 21% of CEOs and 18% of senior management admitted that they didn’t know.

ALP is urging management teams to familiarise themselves with what they are covered for and the terms and conditions which apply.

What senior management think they are covered for in a standard commercial insurance policy:

• Personal injury (57%)
• Damage to company property (55%)
• Employment law claims (42%)
• Dispute over an employment contract (33%)
• Disgruntled employees (20%)
• Tax investigations (18%)
• Loss of crucial/confidential client documents (16%)
• Terrorism (13%)
• Company suppliers not providing the service that my company has paid for (12%)
• Damage to my car in the car park (9%)
• Office pets (2%)

Commenting on the findings, Richard Candy, underwriting director Abbey Legal Protection said: “It is concerning that in tough economic circumstances when legal disputes are more likely and more costly, such a significant proportion of senior managers don’t know what they are covered for and almost certainly don’t know the terms and conditions that apply.

"There is a concerning gap in management understanding of what is covered and how to use the cover that is there. We urge every manager to familiarise themselves with their cover and how to use it. This will provide better insurance protection for the insured company and a better risk management for the insurer.”

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