What is the consequence of not properly verifying insurance and collecting deductibles?

Not properly verifying insurance and collecting deductibles can lead to higher chances of uninsured losses. When an insurance policy is not properly verified, there may be gaps in coverage or policies that are not active when a claim is needed. Additionally, failing to collect deductibles means that the business is taking on more risk than necessary, as deductibles are meant to be the first line of defense against losses. If the necessary deductible amounts are not collected, the financial responsibility for damages or losses could fall entirely on the organization. This scenario highlights the importance of due diligence in managing risk and ensuring that the financial implications of potential losses are adequately mitigated. Managing insurance verification and deductible collection is critical to minimizing exposure to uncovered risks and maintaining financial stability.