A business insurance claim seems easy enough. If you experience an accident or loss, call your insurance company to inform them about the loss, then be reimbursed and made entirely new.
Simple to do!
In many cases, it’s accessible from a company owner’s perspective, but as the numerous horror stories out in the world remind us, that’s not always the scenario.
Here are a few of the most frequently reported small business insurance claims mistakes you must avoid:
Mistake #1:
Not Knowing What You Have in Your Business Insurance Coverage
Though nearly every small business insurance policy provides general liability coverage, this is as comprehensive as some small-business owners think.
Here are a few examples of things that might not cover under the general liability insurance you carry:
The Loss of Revenue Is Due to Business Interruption
Although you probably get covered for damages caused by a catastrophe like a flame, general liability insurance doesn’t cover the loss of income that you lose when your business is closed due to the fire.
It is where separate business interruption insurance is available. Based on the policy, it could use to cover revenue lost due to an insured risk.
Damage to a Business Vehicle
If you own several commercial cars that you use for your business, any damage caused to them gets not covered under the general liability coverage. Instead, it will hide under an additional commercial auto policy.
Uninsured Business Losses Can Be a Source of Loss
If your business begins to offer an innovative service that’s not covered and any injury or loss gets caused, the general liability insurance doesn’t cover it.
Your insurance provider may not be able to provide you with an insurance policy commercially for your business shortly, so keeping them updated and informed is vital. For instance, the landscaper is offering snow removal services in the winter months and does not notify their insurance company or the company that is launching the new service that they are doing so. Their contractor insurer won’t insure them if the snow removal equipment becomes damaged or causes damage to the property of a client.
Contractors and other small companies already have enough on their plates. Be conscious of what you don’t have covered to put some of your concerns to rest.
Mistake #2:
Do Not Call Your Insurance Company Immediately
Imagine the possibility of loss or an accident suffered by your small-sized business the same way you would an accident in your vehicle.
In an auto accident, the first contact should be with emergency services. The next step should be to the insurance provider. Many of us are aware of this. However, we forget this. A similar situation applies in other cases too.
If your small business has suffered losses due to an automobile accident, you should make similar calls.
Before calling your insurance provider, don’t let the water go and wash the damages after a flood. Contact them before beginning the cleaning. In some instances, the insurance company may have a response team that could activate to ensure the claim is dealt with correctly but can help in the recovery process itself.
Mistake #3:
They Are Failing to Document the Loss or the Occurrence Properly
For similar reasons mentioned above, information and pictures must be recorded as soon as possible and entirely when your memory is at its best and evidence is the most readily accessible.
When you’ve experienced any loss, note exactly where it happened, the time of day, and the circumstances that led it to capture as exact a record of the incident as possible.
In a crime scene analogy and a crime scene analogy, if you delay until the next day before you begin recording witness testimony, their recall and accuracy might not be as accurate compared to the moments following the incident. If you are waiting too long to capture photos and video, some of the evidence from the incident may disappear forever.
Accurate and timely details are essential to ensure a successful and smooth insurance claim.
Mistake #4:
Confidential Access
Saying “I apologize! I’m at fault” might be the appropriate and courteous response when someone is injured on your property or at work.
While we believe in incivility, we think it is advisable to err on caution in some instances. When the appropriate procedures and investigations get completed, it is always possible to apologize and then express regret if it turns into your fault.
To safeguard your business and yourself from a possible lawsuit, Avoid admitting guilt. You might think you know what caused the incident, but you’re not aware of the crucial information which could affect the outcome.
In the event of a mistake, admitting it too quickly could make you vulnerable to a lawsuit. The commercial insurance policy usually will cover defense costs.
The first reaction to a mishap or accident is safeguarding the business itself and its staff. Being aware of these frequent mistakes made by insurance companies and the best way to avoid these mistakes can go a far in achieving that.
The claims of different insurance companies’ departments get created the same. We believe ours is one of the tops, and you can read more about our claims department here.
Please don’t hesitate to contact us at Ottawa Commercial Insurance at (613) 454-5640 and info@commercialinsuranceottawa.com with any questions you may have about this or any other topic related to your insurance.