The year 2020 was a tough one for businesses due to the pandemic, which hit hard on the economy. Luckily, 2021 is promising some hope as many businesses are resuming and trying to recover the losses. Those businesses that were cautious enough managed to file insurance claims such as business interruption claims.
Those who did not have any types of insurance policies are opening their eyes and considering various options. You’re probably one of them. But before you join the bandwagon, you first need to understand what are insurance claims and how they affect your business.
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What Are Insurance Claims?
An insurance claim is a formal notification that the business sends to the insurance company to inform them about damage or loss. The notification is typically used to request compensation for the losses incurred. Of course, the business must have an insurance policy covering them against such losses for the claim to go through.
Online insurance companies cover businesses against certain risks, and if they incur losses as a result of the risks, they’ll get compensated. But to get the compensation, the insurance company will first have to carry out an investigation. They’ll then offer their compensation to cover the business losses or the affected third-parties.
Types Of Insurance Claims
Now that many businesses realize the importance of business insurance, you must know the different claim types that your business needs. Below are different types of insurance claims that businesses are likely to make to recover their losses.
Burglary and Theft
Unfortunately, burglary and theft are common in business, and you need to protect yourself against such losses. The claims include damage to the business premise as a result of break-in and theft of company possessions. An insurance policy for a commercial property takes care of all the costs associated with theft and burglary.
Many kinds of property damage cause losses to business people. These damages include water and freezing, vandalism, wind and hail, fire, and more. The insurance policy will cover you against a specific kind of damage and give compensation whenever you suffer such kinds of losses.
Customer Injury and Property Damage
When customers come to your business premises, they may be involved in accidents such as slips and falls. Other times they may suffer property damage, like objects falling on their cars. If your premises are prone to such accidents, you should take an insurance policy, so your customers get compensated for incidences.
Cyber Liability Insurance
Wondering what is cyber liability insurance? This is not such a common type of insurance policy, but it’s usually important, especially in this digital era. Many companies suffer data breaches that threaten to bring them down.
An insurance policy can come in handy in such circumstances to help your business recover the losses. You can recover the losses within the shortest time possible before putting the entire company’s reputation at risk. It also helps recover any financial losses before things get out of hand.
Business Interruption Claim
This is the kind of insurance claim that many businesses are filing after the recent pandemic. The insurance money helps businesses pay for operational costs, utility bills, and rent. This policy offers business coverage against revenue loss after a government order that required the business to close for some time.
There are many other insurance covers that a business can get, such as worker’s compensation, liability insurance, and auto accident, among others. Find out what your business needs most and apply for it.
How to Prepare Business Insurance Claims
Many businesses don’t know how to go about getting their compensation after suffering losses. Many even make mistakes along the way that jeopardize their chances of getting compensated. To avoid claim rejection, here is a step-by-step guide on getting your compensation.
There are certain requirements for reporting insurance claims, and one of them includes the period. You should report the claim immediately to avoid missing the deadlines. You can notify your insurer on the phone and also in writing.
Examine and Document All Damages
If your losses occur from physical damages, make sure they’re substantial enough to warrant a claim. Carry out a thorough examination, including taking pictures before you can do anything else on the premises. You can also get a skilled independent expert to detect the damages that untrained eyes won’t see.
Remain in Constant Communication With the Insurer
You need to maintain constant communication with the insurance company during the claim process to keep them informed all the time. They should know the demands of the loss, repair needs, operational costs, and more. With good communication, you can resolve any doubts and increase your chances of getting more cash in compensation.
If your claim warrants compensation, the insurance company will surely pay. However, don’t expect immediate compensation because the insurance company also has its way of doing business. As you wait for full compensation, you can ask for a cash advance to help you get started with the loss recovery process.
Know Your Rights
The insurance company is always in business and might do whatever it takes to minimize your compensation amount. At times, they even look for the slightest mistake from your side to deny you the compensation. If you suspect foul play or seem to disagree with the insurance representative handling your claim, act immediately.
Take action on the insurer if they seem to act unfairly and are intentionally delaying your compensation. Understand what the law says and know your rights. If necessary, consider consulting an attorney to help you out.
Get Your Business Insurance Now
Running a business without insurance cover is a big risk that you should never take. You risk getting into a huge disaster that can threaten to bring down your business if you cannot recover your losses. Now that you understand what are insurance claims and how they affect your business, you need to get started immediately.
Do you need more help navigating business insurance? We understand that the insurance world can be so complicated. Hence, we’re here to guide you on everything you need to understand.