Mistakes Businesses Make When Filing for an Insurance Claim
Front Line Insurance
Commercial properties aren’t immune to structural damages. This is the reason why business insurance is an imperative protection that both small and large businesses invest in. But as much as the potential damages will be covered, there are some mistakes that jeopardize the insurance payout. This can either delay or deny a business with a claim grant.
Assess your insurance claim strategy using these common mistakes:
Not preparing
The problem with a commercial insurance claim is that it’s larger than the typical residential scale. If the business owners aren’t organized, documentation will be problematic. This stirs chaos in the assessment of the insurer. Such a situation stalls the claim process and increases the possibility of getting denied.
The cost of small business insurance payment should be enough to cover all the losses. If you can’t handle the claim yourself, a public adjuster will be of help.
Failure to understand the policy provisions
Some commercial insurance policyholders tend to overlook the most important provisions of their coverage. This leads to more confusion and chance of losing money due to poor negotiation. If you lack knowledge of the coverage, provisions, and responsibilities as a policyholder, it’s best to hire a public adjuster.
It doesn’t hurt to admit that you know little about insurance. Remember, you own a business, you’re not an insurance expert. Still, take time to know the basics.
Being beaten on the negotiating game
When it comes to large-scale claims, insurance companies are bent to give a fight. This is a trick to either delay the claim or deny you of the payment. You have to be informed and prepared whenever the insurer calls you for an Examination Under Oath (EUO). A lawyer and a public adjuster are your advising team for this matter. Your personal adjuster will fight to get the proper payment for the damages, be it fire, hurricane, theft, and so on.
Not protecting the property
Even before the damage occurs, you should be exhausting all means to protect your business establishment. For example, if a valuable got stolen from your shop, you should have at least a burglary alarm, a lock, and a security guard. This is to establish the intent to prevent the theft from happening. If your business is a sitting duck, the insurance company can deny your claim. Even a small business insurance coverage isn’t exempted from this.
Accepting a denial
Giving up and accepting a claim denial is a no-no. Always ask for a review if you’re sure that the damage should be covered and paid. A public adjuster can advise you about the steps to take. Usually, the insurance company will send a letter to the mail with regard to the details of the denial.
Don’t stop until you exhaust all means to prove your claim. If you have enough evidence but the insurance company refuses to pay, you can file a complaint to the insurance commissioner of your state.
Business insurance shouldn’t just be a case of paperwork. You should embody the provisions on your operations to increase the chance of getting your claims approved.
