7 Safety Gaps That Cost Insurers Millions (And Go Unnoticed by Most Brokers)

Insurance protection gaps are expanding across lines—from property to life—creating potential liabilities due to oversight that can cost carriers dearly. A recent Bain & Company report warns that only 25% to 33% of natural disaster losses will be covered by 2030, with mortality coverage potentially dropping below 50%. For brokers focused on insurance claims prevention, this trend signals one thing: traditional coverage is no longer enough.

Brokers must shift from transactional policy selling to becoming strategic advisors—especially when it comes to insurance risk assessment. While natural disaster losses can’t be controlled, they can be mitigated. When it comes to commercial property risk, in fact, the biggest risk factors aren’t fire, flood, or theft. 

They are a combination of often-overlooked safety risks that, if left unchecked, can lead to major losses or magnify losses caused by outside forces. 

These are: 

• Outdated risk assessments
• Subcontractor liability coverage
• Complacent safety cultures
• Cyber physical insurance gaps
• Deferred maintenance risks
• Underinsurance risk exposure
• Insurance-to-value issues

Proactively help your clients address these risks, and you can reduce losses, increase retention, and elevate your brand above the quote-and-close crowd.

Here’s how. 

1. Outdated Risk Assessments

Risk Type: Commercial property risk, operational risk

Many insured businesses rely on stale data for their insurance risk assessment, overlooking how changes in technology, climate, and operations increase exposure.

Why it’s costly: Underpricing leads to claims exceeding what was modeled.

Broker Opportunity: Use a safety audit checklist annually to ensure assessments evolve with the business.

2. Oversights in Subcontractor Liability

Risk Type: Subcontractor liability coverage, third-party risk

Clients often assume subcontractors maintain sufficient coverage. But gaps or lapsed policies can expose the client—and thus the insurer.

Why it’s costly: Claims from subcontractor accidents or defects may be denied due to improper documentation.

Broker Opportunity: Implement a subcontractor coverage gaps insurance brokers audit to verify insurance compliance. When recommending third-parties for safety audits or training, consider a service like YellowBird that insures those doing this work.

3. Complacency After Safety Certifications

Risk Type: Human factors, behavioral risk

Once certifications are obtained, organizations often assume they’re “done.” But insurance claims prevention requires ongoing vigilance.

Why it’s costly: Lax post-certification behavior reintroduces hazards and increases claim frequency.

Broker Opportunity: Position your agency as a proactive safety partner by offering ongoing workplace safety services like safety audits and training through YellowBird.

4. Lack of Cyber Risk Coverage for Physical Systems

Risk Type: Cyber physical insurance, operational technology

Most brokers address IT cyber threats but overlook risks to physical systems—like manufacturing lines or HVAC systems—controlled by OT software.

Why it’s costly: A cyber breach in these systems can cause fires, injuries, or shutdowns.

Broker Opportunity: Recommend cyber physical insurance add-ons that cover physical damages from digital attacks.

5. Safety Culture Isn’t Monitored or Measured

Risk Type: Behavioral risk

Safety culture isn’t just a metric—it’s a leading indicator of claims. Most brokers look at incident records, not behavioral signals.

Why it’s costly: A weak safety culture breeds higher incident rates, especially in commercial property risk environments.

Broker Opportunity: Integrate cultural audits into your insurance risk assessment approach. 

6. Hidden Maintenance Deferrals

Risk Type: Structural deterioration, deferred maintenance risks

According to recent research, 62% of American property owners are delaying essential maintenance, exposing insurers to over $317 billion in claims.

Why it’s costly: Deferred upkeep often leads to catastrophic failures—e.g., roof collapse, plumbing explosions, or HVAC fires.

Broker Opportunity: Position yourself as a risk prevention ally by offering deferred maintenance risks checklists and proactive inspection reminders.

7. Incomplete Insurance‑to‑Value (ITV) Data

Risk Type: Insurance-to-value issues, underreporting

When assets are undervalued, policy caps are breached during claims—leading to denied or reduced payouts.

Why it’s costly: Underinsurance risk exposure erodes client trust and causes friction with carriers.

Broker Opportunity: Review property valuations regularly. Educate clients on the importance of accurate ITV declarations.

The Broker’s Opportunity

Each of these gaps represents not just a liability but a business opportunity. By

proactively offering services like:

• Insurance risk assessment reviews
• A downloadable safety audit checklist
• Coverage gap detection for subcontractors
• Underinsurance risk exposure briefings

You shift from a commoditized quote machine to a trusted business advisor. Brokers who identify risks before the claim hits are the ones clients keep—and refer.



Take Action Before the Claim Hits

Don’t wait for a loss to expose what your risk assessments missed. At YellowBird, we connect your clients with certified safety professionals who specialize in uncovering the hidden safety gaps that lead to costly claims. Our nationwide network of experts is ready to support your clients—fast. YellowBird is your flexible, on-call partner in building a safer future.