How to File a Business Insurance Claim

Whether you’re the CEO of a large corporation or own a small family store, if you fail to protect your investment with business insurance, a natural disaster or major liability lawsuit could send your business spiraling toward bankruptcy.

This article will help walk you through the process of filing a business insurance claim.

Business Insurance Claim – How to File

When a fire, accident, natural disaster or burglary impacts your business and you need to file a business insurance claim, here are the steps you should take:

• Inform your insurance agent of the incident as soon as possible. Provide as much information as possible, and give detailed answers. If a burglary or theft has occurred, contact local law enforcement officials immediately.

• Read your business insurance policy to learn the requirements of business owners after a loss.

• If a disaster has struck, do your best to minimize further damage by making temporary repairs.

• Before disposing of damaged objects, give the claims adjuster an opportunity to inspect them.
  Get multiple estimates on the cost to repair or replace damaged items or property.

Need to File a Business Interruption Claim?

Business interruption covers losses sustained when business is interrupted due to a covered peril—a crucial safety net for most businesses. But filing a business interruption claim can be a trying process, and usually requires that the business keep records of the following:

• Proof of the income it was generating both before and after the interruption began.

• The price tag for conducting business from a temporary location.

• Detailed records of business activity.

• If the business is forced to close down, list the expenses that continue while business is suspended, such as advertising, utilities, etc.

If a Business Insurance Claim is Handled Poorly

Even when business owners follow proper filing procedure, not every business insurance claim goes off without a hitch. If you’re unhappy with how a business insurance claim was handled, you have options:

• Speak to your insurance agent and/or claims adjuster and express your displeasure with how the claim was handled.

• Contact the insurance company’s customer service or claims department.

• If all other measures fail, voice your displeasure to your state’s department of insurance for assistance.

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