Most firms lack ample insurance to maintain profitability: Hub report

Seventy-six percent of organizations in the United States do not have ample insurance to maintain profitability, and nearly 20% take property loss prevention measures only if local rules demand it, according to a report released Wednesday by Hub International Ltd.

The report is based on a survey conducted earlier this year of 900 clients in 11 industry sectors in the United States and Canada.

“We have to make sure we close the gap between perceived and actual preparedness,” said Mary-Beth Hahn, Hub’s Summit, New Jersey-based North American complex risk practice leader.

The survey found that 27% of organizations use insurance to manage profitability-related risks. “We think the opportunity’s there” to make sure companies leverage insurance as a strategic financial tool, Ms. Hahn said.

The survey found that 68% of respondents recognize the importance of training and teaching their employees new skills, yet just 36% strongly and consistently focus on it.