Your business has been running smoothly for the past few years, until suddenly you run into an accident and need to file a business insurance claim. Do you know how to file one?
How will you respond? Do you know how to avoid claim filing mistakes? Managing business insurance claims involves 12 steps, which we’ll outline in the following article.
If you work with an independent agent in the Pawson Insurance, you can simply start by calling your agent, who will help you through the entire claims process.
Business Insurance Coverage
This insurance coverage protects your business from different types of losses that occur during the course of business. From property damage insurance to, employee-related risks and legal liability, each insurance type offers different coverage. In order to identify what business insurance coverage you need, first you need to evaluate your business’s potential risks. Depending on what products you manufacture or the type of service you run and provide, the insurance coverage can also be customized to suit your needs.
Let’s briefly look at the different types of business insurance coverage before moving on to the steps of filing a claim:
General Liability Insurance
Whether you operate a business from home or have a physical office, you need to have this liability insurance. It protects you, your business, your employees and workers and services or products from damages and defense in case anyone involved with the business and the business itself has caused property damage or bodily injury to a 3rd party.
Product Liability Insurance
Same as the general liability insurance, this business insurance coverage protects the company from lawsuits.
This insurance policy covers the company building, office equipment, inventory, computers, and tools. It protects you from vandalism, fire, smoke damage, theft, etc.
Business Owner’s Policy (BOP)
This insurance is a complete package that includes a number of business insurance policies such as vehicle coverage, property insurance, business interruption insurance, crime insurance, and liability insurance.
Commercial Auto Insurance
This insurance policy insures all work cars, the products carried in it, and the workers. In case the worker drives his car for running company errands, then you should look into non-owned auto liability.
This is the most common type of insurance policy that employees demand. It provides compensation to the employees in case they are injured while doing their job.
Professional Liability Insurance
This insurance policy protects against damages and defends failure, when professional services haven’t been offered properly. Professional liability insurance is different than general liability insurance and it provides coverage for lawyers, consultants, accountants, real estate agents, etc.
Officers and Directors Insurance
This insurance protects the officers and directors of the company against actions that impact the company’s profitability.
When sensitive data about the business is breached electronically, then this insurance policy protects against this information loss.
Information Regarding a Business Insurance Claim
Steps for Filing a Business Insurance Claim
Now that you are familiar with all the insurance policies, let’s look at the 12 steps that you need to follow to file a business insurance claim:
- Once you have been notified of the peril, contact your insurance agency immediately
- Depending on the extent of the damage or how big the theft was, call the police or the fire department
- Take out your insurance policy to review what is covered under it relating to the occurred event
- Talk with the insurance agent at length and note down everything whatever information is passed on. Make sure to take clear notes so that you know what you have to do when faced with making a decision
- Make a list of the inventory that was stolen, damaged or lost
- Attach the entire business record in relation to the inventory and do make sure to include the income loss documentation, so that when the insurance company sends someone from their side to inspect the damage or theft, you have everything on hand
- Take photos or videos of everything that was damaged
- Sign a “proof of loss” sworn statement and file it with the initial business insurance claim within 60 days
- Once the insurance claim has been filed, start recording all expenses that you incur during relocation of the business and recovering what was lost
- Tackle small property repairs first and hold off on big repairs until you get the compensation from the insurance agency
- When tackling complex repairs, get multiple estimates from companies and do a full background check on them to make sure that they can handle the work
- Finally, when you have received the compensation, keep all the documents, starting from the filing of the claim to payment received, in a safe place
In case the insurance company does not accept your filed claim, a civil authority coverage will help you make your case. This usually happens when government itself denies the coverage.
While the steps to filing a business insurance claim is pretty easy, it is the upkeep of the documentation that presents a challenge. Once you have recorded even the smallest of damage, you will have proof to make your case.
If you are looking for a qualified insurance agent, who holds years of experience in this field, then visit Pawson. The company provides different types of business insurance coverage. To know more about their policies, contact them at 203-481-8898.
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Pawson Insurance | Legal Disclaimer |
Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. Consult the actual policy or your agent for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you. Your eligibility for particular products and services is subject to the final determination of underwriting qualifications and acceptance by the insurance underwriting company providing such products or services. Statements on this website as to policies and coverages provide general information only. This information is not an offer to sell insurance.