Unfortunate accidents and losses can happen affecting the business operation financially. To cover financial losses due to damages, liability, crime, or accidents, the small business owner needs to file a business insurance claim. Business insurance majorly covers financial losses a business experiences due to several cases it covers.
There are different business insurance policies a business owner needs to file a claim. These policies include commercial property, general liability, workers compensation and commercial auto insurance. Knowing the right way to file a business insurance claim can help businesses recover their money faster and get their businesses up and running as soon as possible.
What are Business Insurance Claims?
A business insurance claim is information you send to your insurance company informing them of the losses your business has encountered. As well as a request for compensation for the loss if your insurance policy covers it. If your insurance policy covers the risks or losses your business suffered, filing a claim is the right thing to do. Once the claim has been received, your business insurance provider will examine the claim. Also, if approved, the insurer will issue payment to a third party affected by the claim or to you.
How to Properly File a Business Insurance Claim
Small businesses must know how to file a business insurance claim properly. This is because about 40% of their small businesses fill claims against their insurance policies. In a case where you need to file a business claim, the following is a step-by-step guide on how to properly file a claim.
Create a Plan Ahead
Creating a plan ahead in case you ever have to file a business insurance claim is the best to do. Although you may not have to implement your plan it is best to be prepared to help you file a claim quickly and properly if needed. The best way to plan is to know what you’ll need. For instance, video or photo evidence in case of an accident requiring a claim. Installing a surveillance camera for video evidence can help you in filing a claim against vandalism or theft at your company.
Put Together Evidence
Ensure you put together evidence to hand over to the insurance company after your business suffers a disaster that requires an insurance claim. Provide photos and videos relating to the disaster, and take note of persons who were present. And witnessed the disaster so they could give their testimonies or get them to write them down. Also take into the record all that was damaged, lost, or ruined during the disaster.
If Necessary, File a Police Report
If your business claim is related to a car accident, a crime on your business property, or theft, filing a police report is a good idea. Most insurance companies require a police report for cases of a car accident or crime.
Reach Out to Your Insurance Agent
Contact your insurance agent or broker and inform them of the case. Your insurance agent should be able to explain the claim process to you and ask questions concerning the case you’re filing a claim for. After that, they’d assist you in filling the claim form as well as it’s submission to your insurance company.
Have a Discussion with Your Insurance Adjuster
After filing your business insurance claim, an insurance adjuster will be assigned to you in a few days. Your adjuster would investigate the claim and determine how much liability your insurer carries on your situation. Your adjuster will also require proof of losses and access to any evidence like videos or photos from you.
Get Estimates from Professionals
After all is done, get assessments from professionals for repairs. In cases where your business building is damaged due to a fire or storm, contacting a contractor to assess the damage and determine the cost of repairs can help your claim filing. For cases like these getting at least two estimates is important. However, you’d have to pay its expenses out of pocket.
Consider Contacting a Lawyer
Based on your claim size, you may consider consulting a business insurance lawyer for legal advice. An insurance lawyer can put you through the claim documentation process. And can help you resolve any issue that will occur with the insurance adjuster.
Consider Accounting Help
Considering a forensic accountant to help your business claim file documentation can help your claim process. A forensic accountant can help with the accurate evaluation of the losses your business suffered and what the insurance company should cover.
How Long Do Business Insurance Claims Take?
How long a business insurance claim takes depends on how complex the case is. Most states have timelines by law on how long an insurance company has to pay out claims. For instance, in countries like California, insurance companies must assess a claim within 15 days after it has been filled and submitted. After that, they have a maximum of 40 days to deny or accept the claim. If accepted, the insurance company is required to pay out the claim within a maximum of 30 days of the settlement date.
