Your car is involved in an accident and you failed to contact your business insurance provider immediately. Maybe you did not document your property damage, or you admitted fault for an incident. All of these could affect your claim. If you own commercial insurance and your business is affected by natural disasters or require a general liability claim, it can be easy for business owners to make mistakes filing insurance claims.
Sadly, having commercial insurance does not guarantee that you’ll have full reimbursement for damages or loss. This can be due to avoidable mistakes made during the filing process.
Here are some common mistakes small business owners make when filing insurance claims.
Not Getting Acquainted with Your Policy
Truth be told, insurance policies are complex and do not usually cover everything. Do not assume that your commercial property insurance covers your office for damages caused by floods, earthquakes, and other natural disasters. You need to learn exactly what your insurance covers or does not cover. There is no room for assumptions.
Delay Contacting Your Insurer
The moment you experience disruption to your business due to disasters, you need to contact your insurance company. The earlier you contact your insurer, the easier it is to make necessary adjustments. Most commercial property policies require prompt notice of loss or damage. Many general liabilities and umbrella insurance policies require immediate notification after an event. Failure to report an incident within the first 48 hours may lead to your insurer refusing payment.
Not Documenting Damage
Documentation includes a record of any conversations with your insurer or its representatives. Keep an updated correspondence log. Take photographs of the scene, the damaged equipment, goods, utilities, and anything else that may be costly to repair or replace. Your insurance company wants proof of damages or loss due to the disaster or accident. Be sure to make it available. Failure to thoroughly document damage may result in a lower pay-out or a refusal of your claim.
Disposing of Damaged Items
Don’t throw away physical evidence. It proves the extent of your loss and impact on your business. You must also take reasonable steps to prevent further damage to your property. Keep records of receipts to qualify for reimbursement.
Admittance of Fault
Don’t be quick to admit fault if a customer is injured on your business premises. You could invite a lawsuit if you do. Investigate the cause of the incident and let your insurer guide your response.
Refusal to Advocate for Yourself
Don’t just accept anything said by your insurer but be cooperative. Be realistic about the value of your asset but don’t accept undervaluation or below replacement value. Hire your own adjuster for a second estimate if you are unsatisfied.
Taking due diligence is important for full payment of claims. Therefore, getting to know the content of your insurance is the first step to taking control of your insurance and ensuring you get everything that you pay for. If you have any additional questions about business and personal insurance, contact the experts at Gant Insurance Agency in McKinney, Texas. We are ready to help you with all your coverage needs today.
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