buildings insurance

[gibbos3]

Hi,
I have had a look on this forum and can't find anything related to this subject, so sorry if this has been posted before.

I hear that businesses such as B&Q and some petrol filling stations etc are not taking out insurance policies anymore, but rather they are saying they are big enough to stand any claims for damage to buildings etc themselves.

Does anyone on this forum have any further info on this please. I am very curious.

In this claim culture we find ourselves in at the moment how exactly does this work? And is it wise?
Thanks.

[gibbos3]

Thanks,

How would it work though if the company made subsidaries within their own company . Would they then have to insure, or would the parent company still insure them?

[insurance_jon]

There is no requirement to have buildings insurance,it's reccomended, but not required. Some companies(inc smaller ones) see it as an unnecessary cost and only insure their legal requirements, and put the money saved each year aside into a contingency fund. Some larger organisations start their own captive insurance company, i.e an insurer they own and they are the only client. Others are large enough to absorb any costs, especially if they have ,many properties spread over a large area, as the likelyhood of loosing them all in one go is minimal.
Larger organisations can also set up catpive insurance companies to cover their legal requirements, such as motor, and employers liability.

Many large fleet owners just take the basic legal Third Party Only insurance out on their vehicles.

Hope this helps

[gibbos3]

thank you both very much.