Business Insurance, my company deciding on levels of payout

JS87

We had a lot of stuff stolen from my work cross multiple departments in the company.

My department was the worst hit, losing an estimated £50K worth of stuff.

I've just been told informally that the settlement should be coming through and the company will be allocated X amount of funds to spend as they wish. That's then getting split among the departments that had a loss at a level that the person who's dealing with it sees fit. I'm now being told that I'm only going to get around £20K of the payout as my company don't think I need everything I had before (I can justify a need for everything) and they have decided that other departments need new extra things so they will be getting more money in the payout than they have lost.

I completely understand that the insurance company are giving the lowest amount they can give and I will receive less than my loss, however, in this case I've lost £30K, the insurance is giving £25K towards the loss of those items, and my company is giving my department £20K and keeping £5K to use as they wish elsewhere (not to replace items lost).

Is there some sort of ruling or legislation that requires the insurance money to be spent replacing the insurance items (or similar items)? Can my company really pocket £5k at the loss of my department's items? Or is this just a chin up and carry on moment and another fine example of how my company are just naff at management?

tizerbelle

If I'm reading this correctly (and ignoring the "I lost..."), it was the company's equipment that was stolen, which was covered by the company's insurance policy. Sorry but it's the company's money to do with it what they want - if they chose not to replace any of the equipment and spend it on a new intruder alarm system - it's their choice completely.

The only thing you could possibly do is submit a business requirement / funding proposal for the missing equipment outlining the costs and benefits of replacing it or not and hope for the best. You certainly can't force them to spend it where you want.

rs65

The insurer pays the insured. The insured can do what they want.

This isn't an insurance issue.

k3lvc

JS87 wrote: »

We had a lot of stuff stolen from my work cross multiple departments in the company.

My department was the worst hit, losing an estimated £50K worth of stuff.

I've just been told informally that the settlement should be coming through and the company will be allocated X amount of funds to spend as they wish. That's then getting split among the departments that had a loss at a level that the person who's dealing with it sees fit. I'm now being told that I'm only going to get around £20K of the payout as my company don't think I need everything I had before (I can justify a need for everything) and they have decided that other departments need new extra things so they will be getting more money in the payout than they have lost.

I completely understand that the insurance company are giving the lowest amount they can give and I will receive less than my loss, however, in this case I've lost £30K, the insurance is giving £25K towards the loss of those items, and my company is giving my department £20K and keeping £5K to use as they wish elsewhere (not to replace items lost).

Is there some sort of ruling or legislation that requires the insurance money to be spent replacing the insurance items (or similar items)? Can my company really pocket £5k at the loss of my department's items? Or is this just a chin up and carry on moment and another fine example of how my company are just naff at management?

You need to up your internal negotiation skills - obviously someone above you doesn't believe that full replacement of the lost equipment is needed and there are better uses for that money. Businesses are (generally) there to make money by making the best use of it's resources - maybe time to show what you could do better if you had the full funding.


And agree with other posters - this is nothing to do with insurance at all

Quentin

Hope no-one above you at work sees this thread!