Filing Business Insurance Claims

Many businesses face catastrophes daily, but some feel the impact more than others. Some of these businesses already have coverage that shields them from unforeseen dangers. What they should know then is how to go about filing business insurance claims.

This post will teach you everything you should on filing business insurance claims. You don’t want to miss such important information so stick with me to the end of this post.

What Is Business Insurance?

A business insurance policy protects a company against financial damages resulting from incidents that may occur during the usual business course. Property damage, legal responsibility, and employee-related hazards are just a few of the different business insurance policies available.

It may be necessary for a corporation to get additional insurance coverage. However, this depends on the sort of area in which a firm works, among other factors. It’s vital a business gets business insurance.

Why Your Business Needs Insurance

It’s difficult to deal with a scenario that damages your company’s reputation. Consider this scenario:

  • Temporarily shutting down the company due to an electrical fire you cannot easily recover from.
  • A burglary results in the loss of valuables, such as a specialized piece of machinery.
  • Injuries to a client occur on the premises of your firm.
  • Due to a storm, wildfire, flood, or other calamities, you are unable to access your property and must leave.

However, if you are sufficiently insured, you can bounce back from these occurrences and keep your company going. It’s essential to register your claim as soon as possible after handling any on-site emergencies that may have arisen.

Steps for Filing Business Insurance Claims

Follow the steps below to make business insurance claims after an event calls for it:

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Reach out as soon as possible

The sooner you get in touch with your insurer, the sooner you may begin making a claim. Your insurance may send an adjuster to assess the property if the damage is severe.

Get the police

For criminal losses, you should get a copy of the police report from the police department and contact them if required.

Go through your policy

When an insurable loss happens, review your insurance policy to see if there are any measures you need to take.

Prepare an inventory

Prepare an inventory of damaged or destroyed things and provide a copy to your insurance company or adjuster. You should go along with copies of any receipts to support your loss.

Get your proof of loss

Signed and written evidence of loss will be required if you want to proceed with a claim investigation. This must be completed within 60 days of the insurer’s first request.

Prepare to have the adjuster

If your insurance company sends an adjuster, be prepared to have them check the premises. They will also have to study the books and records of the property.

Note all the damages 

Determine the extent of damage to your building and other buildings. Write a list of everything you wish to show the insurance adjusters. To document the damage, you may wish to take photographs or videos.

Do some temporary repairs

Take reasonable efforts to prevent your property from additional harm, if necessary, such as making temporary repairs. It is possible to temporarily patch up your roof by just covering the damaged area with a piece of tarp. The damaged components should be saved in case the insurance claims adjuster wants to examine them. 

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The costs for temporary repairs are included in the overall settlement. Save all receipts and submit them to your insurance carrier if you need to be reimbursed.

Get more than one repair bids

Repairs or replacements should be tendered competitively to give choices and keep prices down.

Remain organized

The best way to ensure that your insurance claims are processed quickly is to save a copy of any documentation submitted. Also, save any paperwork provided by your insurance company. Keep track of every person you speak to when making a claim, as well as their names and phone numbers.

Steps to take to claim more company revenue

If your firm shuts down or moves temporarily, you should make a claim for business revenue and additional expenses. Your proof of net income and ongoing regular operational expenditures, including payroll, are required to obtain a business income settlement.  This is before and even after the occurrence interrupted your firm.

When determining income, your insurance company may also look at your financial records over time. After the incident, maintain a full note of everything that happened:

  • The business activity you continue while recovering from the catastrophe
  • Operation at a transitory site and the cost it incurs
  • Expenses like power bills and advertising that must be paid even if your firm is closed.

Filing civil claims with the government

Expenses and lost business revenue may be reimbursed if government action prohibits you from accessing and operating your firm. For example, closing an area for inspection after a catastrophe may hinder your business operation. Your Company Owners Policy or Commercial Package Policy (CPP) may cover this form of business interruption.

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Civil authority coverage for commercial revenue typically starts 72 hours after government action initially limits access to your facilities. This coverage lasts up to four weeks. When a civil action is filed, coverage for relevant expenditures begins immediately and persists typically for up to four weeks.

Only when all of the following conditions are satisfied does civil authority coverage kick in:

  • The government makes it impossible to access the insured property.
  • The ban is imposed as a consequence of damage or loss to property within a one-mile radius of the insured property.
  • The “waiting period” deductible has been satisfied.

Getting to the bottom of a problem in settlement

You may attempt to gain an adjustment if you are dissatisfied with how your claim was handled and your settlement amount. Try these steps:

  • Explain your concerns to your insurance agent or claims manager.
  • Contact the claims manager to get a greater payout from your insurance company and explain why you believe you deserve it. Please include a detailed description of the issue you’re having and copies of any relevant documents.
  • If you have an issue, you should speak with the insurance department in your state.

Conclusion

Now you know everything you need to on how to go about filing business insurance claims. You shouldn’t have a problem with getting paid for your insurance.

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