Business Insurance Claims

Buying insurance can be difficult enough, especially for business owners. However, once you get used to the language and acronyms, and have found an agent you feel you can trust, the difficult part could become getting the company to pay claims.

The process you will need to follow is:

Notificition. Tell your insurance company right away when there is any damage or loss, or if someone has filed a lawsuit against your business (or you). Also make sure the police are notified where crimes or accidents are involved.

Review. Look over your policy to make sure you understand the obligations of both your business and your insurance company.

Evaluate. Assess the loss and make a list of everything that was damaged or stolen.

Locate. Find all proof of ownership documents and receipts. If you are being sued, find all documents or information that might pertain to the lawsuit.

Even though you will have to call your insurance company, also send them notice in writing. Send these documents registered mail for proof that you sent them and the date they were received. This is important—insurance does not cover legal costs for the time period prior to notifying them of the claim, so if you have to hire an attorney before you notify the insurance company you may be paying out of your own coffers.

Make sure you have all documentation required for filing your claim. You will have to fill out paperwork and work out how much loss you will incur over time. Keep records of all activities related to your business—these will be what determines how much business and income will be covered.

Even though you have prepared, provided proof, receipts, etc., you may still have to go head-to-head with your insurance company. If you feel you are not being given a fair settlement, call a meeting with customer service or your claims adjuster. If you can work with them you may be able to come to an agreement; however, if you are totally at odds with their decisions, you may have to hire an attorney who has worked with insurance claims.