6 Mistakes to Avoid When Filing an Insurance Claim

September 11, 2020 Blog

Helpful Advice about General Liability Insurance

Buying business insurance gives you peace of mind knowing that if something goes wrong, you have help to recover. The process works well. You pay for your policy each month so when you suffer a loss, the insurer issues a check and you are back on track taking care of your customers. Well, in a perfect world that is how it should happen. In reality, many additional steps or mistakes can be made to slow the process, or even stop it.

Avoid having your claim denied. Be sure you know what your policy, such as your general liability insurance, does and doesn’t cover. When you have questions, reach out to your friendly and knowledgeable broker at The Business Insurance Center. We are happy to assist you with understanding the coverages you have and what you may need for complete protection.

Steer Clear of these 6 Mistakes When Filing a Claim

In the middle of calamity, it can be easy to overlook steps you should take to make things easier for your insurance claim to be paid. Be prepared by reviewing these common mistakes so that you can avoid a denied claim:

  1. Unfamiliarity with Your Policies: Your general liability policy covers injury or damage to third parties and their property. That means if your equipment gets damaged in a fire at your office, your policy may not cover it. You may have to pay out-of-pocket to repair or replace tools and computers. Your Business Insurance Center broker can assess your existing policies, explain what coverage you have, and develop an insurance plan to fill in the gaps.
  2. Failing to Contact Your Insurer Immediately: The sooner you report property damages, the better. Your memory will be fresh, and claims are easier to adjust in the beginning. Many insurers have quick-response teams ready to assess the situation and damages. Many policies require you to report an incident within 48 hours, or they can refuse payment. Be sure you know what is needed from your policyholder.
  3. Not Documenting Damage: Document the damages done as thoroughly as possible. Photograph damaged equipment, goods, utilities, and anything else that may be costly to repair or replace immediately. It’s a good idea to record the time, date, and substance of any verbal conversations, retain copies of mailed correspondence, and keep all email exchanges in a folder on your computer.
  4. Throwing Out Damaged Goods and Belongings: Hold on to the damaged items until your adjuster lets you know it’s okay to get rid of them. The physical evidence is vital to proving the extent of your loss. It may be necessary to make some temporary repairs to prevent further damage. Be sure to keep your receipts and submit them to your insurance company.
  5. Admitting Fault: Do not admit fault. Doing so removes any doubt about the cause of the accident and you may not know all the factors that came into play. It will also impair your insurer’s ability to defend you. Some policies prohibit you from assuming fault without first receiving consent from your insurer. Admitting fault may put you in breach of contract and your claim being denied.
  6. Not Advocating for Your Company: It might seem counterintuitive to argue with an adjuster about your claim. In reality, it’s not about arguing because you want to cooperate, but it is also about not automatically accepting everything your insurer says. Instead, be realistic about what your damaged property is worth with clear, well-documented evidence. This helps if an adjuster undervalues the items in questions. You can also hire your own adjuster for a second opinion and use a third-party mediator if the values differ.

Make Your General Liability Insurance Claim Count – Help from The Business Insurance Center

Give yourself a leg up when you file a claim by knowing what your policies cover, and reporting and documenting damage as soon as possible. Your Business Insurance Center broker is happy to assist you with all your business coverage needs. We work with a variety of insurers to get you the best coverage at very reasonable rates. We love supporting small-to-medium sized companies, the self-employed, and entrepreneurs alike. Let us give you the help you need to protect your future.

Request a quote online or call and speak with a knowledgeable and experienced broker at the Business Insurance Center about purchasing general liability insurance for your company or non-profit organization. We have a 24/7 call center to serve you and an online Live Chat operator. 

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