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Making a Business Insurance Claim

Insurance & Risk ManagementLegacy

Buying insurance is usually the easy part, once you understand the language and find an insurance agent with whom you feel comfortable. Often the more difficult aspect of being insured is filing a claim and getting the insurance company to pay on that claim.

To make a claim you need to:

  • Notify your insurance company immediately when you experience a loss, damages, or have a lawsuit filed against you or your business. You should also immediately notify the police of a burglary, theft, or accident.
  • Review your insurance policy, which will explain your responsibilities to the insurance company.
  • Assess the damages and/or list the items lost, stolen, or destroyed.
  • Find receipts or proof of ownership for as many lost, stolen, or destroyed items as possible.
  • In the case of a lawsuit from a third party, gather any information you may have on the incident or reason for the lawsuit.

    Although you may elect to phone your insurance company, you should also send a written notice by registered mail. This will provide verifiable proof of the date you notified your insurance provider about a particular claim.

    Keep in mind that some insurance companies will not cover any legal fees you might incur prior to notifying them about the claim. Therefore, if you run out and hire a lawyer before reporting the claim, you may pay out of pocket until you involve the insurance company.

    The process of filing a claim will require that you have your paperwork in order. For example, if you have business interruption insurance, you'll need to show, on paper, how much business you are losing during the interruption period. It's essential to keep good records of your business activity. These records will be used to determine how much income you're actually losing.

    Once you file a claim, be prepared to possibly do battle with your insurance company. If you feel you're not receiving a fair settlement, schedule a time to talk with your insurance agent, the claims adjustor, and/or contact the customer service division of the insurance provider. Working with your insurance company, you may be able to reach a better settlement. If you're completely dissatisfied, you might want to hire an attorney familiar with insurance claims to help you with the settlement.