Insurance policies cover your business and protect it against common risk factors. When your business experiences a loss caused by a crime or accident, you can file an insurance claim to help cover all the losses incurred. The insurance policies you can file a claim against include commercial property, general liability, and workers’ compensation. However, you need to understand how to file your business insurance claim properly to get your money quicker. This article explains how to file a business insurance claim successfully.
What Are Business Insurance Claims?
A business insurance claim describes a formal communication to your insurance company requesting compensation for the damage or loss you’ve incurred. Upon receiving the claim, your insurance company will investigate the issue to determine if it meets the threshold. Your insurance firm will only cover a loss related to a risk covered in your insurance policy. Once your claim is approved, your insurance company will release the total payment to cover the damage and loss you suffered.
How to Properly File a Business Insurance Claim
If you are an entrepreneur, it is critical to understand how to file a business insurance claim successfully. Here are some steps you can follow:
- Plan – the first step involves making a plan ahead of time. Preparing helps reduce the stress of gathering information when filing a claim. You can install CCTV surveillance in your business premises to help with video evidence in case of theft.
- Gather evidence – After your business has suffered damage or loss, you must collect all necessary evidence before filing a claim. You can take inventory of everything damaged and gather witnesses to testify.
- Report to the police – If your business suffered crime or vandalism, you can file a police report at the nearest police station.
- Contact your insurance agent – You can contact your insurance broker or agent and notify them of the situation. They will guide you on the claim process and help you fill out and submit the claim form to the insurance firm.
- Talk to Your insurance adjuster – After you have filed a business insurance claim, you will be assigned an adjuster within a few days. The adjuster’s work is to investigate your claim and estimate the amount of liability that rests with the insurer in your case.
- Get assessments from professionals – You can consult a professional to get quotes and estimates for repair. It is important to note that you will have to pay for their services.
- Consult a lawyer – You can consult an insurance lawyer who can help you in the claims documentation process.
What Are The Most Common Business Insurance Claims?
Here are the five most common business insurance claims:
- Water damage – These are problems caused by floods and rainstorms. Research indicates that water damage amounts to 15% of all yearly business insurance claims.
- Burglary and Theft – Incidents of theft and burglary amount to up to one-fifth of annual business insurance claims.
- Product Liability – Product liability makes up approximately 5% of annual small business insurance claims.
- Reputational damage – Reputational damage involves a third-party claim made against a company for invasion of privacy or slander. Reputational damage makes up 5% of annual business insurance claims.
- Customer injuries – A customer may slip or fall and injure themselves on company premises. Customer injuries make up approximately 10% of annual business claims.
