When a small business suffers a financial loss due to damage, accident, crime, or liability, the owner must file an insurance claim to help cover the costs. Your company’s insurance protects it from a variety of risks. You may need to file a claim against a variety of insurance plans, including general liability, commercial property, workers’ compensation, and commercial car insurance. Understanding how to file a business insurance claim correctly can help you get your money back faster so you can get back to business as soon as possible.
Learn how to file company insurance claims and get paid promptly by looking at the following topics:
Can you file an insurance claim against a business?
An injury claim against a corporation is far more complicated and difficult than one against an individual. You must first gather documentation and ensure that you meet all of the conditions for your claim before contacting the business or the insurance.
How do business insurance claims work?
A business insurance claim is a formal statement filed to your insurance carrier informing them of a loss or damage you’ve experienced and requesting compensation for the loss, if it’s covered by your policy. Your insurance policy will protect you for specific risks, and you should file a claim if the loss is related to one of those risks.
Once your insurance provider receives your claim, they will evaluate it and, if it is approved, they will make a payment to you or a third-party affected by the claim on your behalf.
How long does business insurance claim take?
The length of time it takes to repair various types of physical damage to your car is determined by the intricacy of the claim. Within one to three days of submitting a claim, you should receive your first contact with an insurance adjuster. It could take a few additional days if an adjuster needs to look at the damage. Using a body shop that has been approved by your insurance carrier will expedite the procedure. A straightforward physical-damage claim should take one to two weeks to complete. This entails coordinating with a body shop and setting up a repair appointment.
Can I take someone to small claims court on a verbal agreement?
You may have concerns about suing for money due without a contract if you hurried into a business deal or borrowed money to a buddy in need and haven’t been paid back. You can sue over a verbal agreement by watching an episode of People’s Court or Judge Judy, for example. However, you must prove your case, which can be challenging.
What are the most common business insurance claims?
We frequently associate commercial insurance claims with catastrophic or uncommon incidents, but small business insurance claims are a common occurrence. But what are the most typical claims? What insurance coverages can you use to safeguard your small business?
The five most common business insurance claims are:
1. Theft and burglary. Internal theft by workers, as well as break-ins, are included in burglary and theft claims. Employee theft accounts for 42 percent of inventory loss in U.S. stores.
What you can do: To prevent staff theft, follow these procedures. Invest in a good security system and consider constructing fencing around your building to prevent break-ins. To deter would-be burglars, make sure your shop is brightly illuminated.
What kind of insurance do you need? Start with commercial property insurance. Then, to be sure you’re covered, add a criminal endorsement and an employee dishonesty/theft endorsement to your policy.
2. Damage caused by water. Snow, flooding, cold conditions, and burst pipes can all cause water damage to companies.
What you can do: Keep your building’s roof clear of snow and ice to avoid ice dams and roof damage. Make sure someone on staff knows how to turn off the water in the event of a plumbing emergency, and keep the building’s temperature above 55 degrees Fahrenheit in the winter.
What kind of protection do you require: Water damage from snow, freezing conditions, and burst pipes is normally covered by commercial property insurance, but floods are not. If your firm is forced to close due to flood damage, business income insurance can compensate you for the lost revenue. The Federal Emergency Management Agency can help you learn more about flood insurance, including who needs it, what’s covered, and how to acquire it.
3. Hail and wind damage When heavy winds and hail cause damage to commercial property, it can be costly not just to the business but also to the property owner.
What you can do: Keep trees near your home in good shape by trimming overhanging branches and removing dead or dying trees as soon as possible. Outdoor equipment that could be blown into your building by strong winds should be secured, and windows should be protected if a severe storm is forecast.
What coverage you need: Commercial property insurance, including water damage insurance, will cover losses caused by wind and hail, and company income insurance can reimburse you for missed revenue while repairs are being done.
4. There has been fire damage. A structural fire occurs every 64 seconds, according to the Insurance Information Institute. Structure fires that were not caused by wildfires caused $11.1 billion in property damage in 2018.
What you can do to help: Create a fire safety checklist for your company. Inspect and maintain fire extinguishers at your workplace, and provide training to all staff on how to use them. Install a fire sprinkler or fire suppression system in business buildings (some places demand this), and clean and inspect any electrical equipment that could cause a fire on a regular basis. Make an emergency departure strategy and have your personnel practice it.
What coverage you’ll need: Commercial property insurance will cover fire damage repairs, while business income insurance will compensate for lost revenue.
5. The client trips and falls. Customers of small enterprises frequently experience injuries as a result of slips and falls.
What you can do: Keep your business safe by swiftly cleaning up spills to avoid slick flooring. Tripping risks, such as loose area rugs, floor mats, or uneven floors, should be repaired or removed. Keep your location free of any other debris that could cause consumers to trip, such as items on the floor, loose electrical cords, and so on. If you’re worried about fraudulent claims on your property, try installing cameras to lessen or prevent them.
What kind of protection do you require: Most losses resulting from a consumer slip-and-fall accident will be covered by general liability coverage.
Frankenmuth Insurance provides coverage for companies of all sizes and in a variety of sectors. While these examples are an excellent place to start, an independent agent is your greatest resource for determining whether a business owners policy, a commercial package insurance, or another alternative would best cover you. Our local, independent agents will assess your company’s specific needs and tailor a policy specifically for you. And you can rest confident that when you file a claim with Frankenmuth Insurance, your claim will be thoroughly examined and evaluated based on the specific coverage, facts, and circumstances.
Want to get a head start on preventing losses in your company? With our free Disaster Preparedness Guide, you can start identifying hazards right away.
Who handles insurance claims in a company?
A: The California Insurance Commissioner and his staff at the Department of Insurance (CDI) are in charge of overseeing the state’s insurance firms, agents, brokers, and public adjusters.
In California, there are rules and regulations in place to protect consumers from unfair insurance practices. A Guide to Your Insurance Legal Rights will teach you what they are.
The function of the Insurance Commissioner is to ensure that insurance firms keep their promises and have adequate money to pay claims. The position of Commissioner is a four-year elected position in the state of California. Consumer complaints are handled by the Consumer Services Bureau, which is part of the California Department of Consumer Affairs.
In disaster zones, the CDI arranges public meetings. Homeowners and businesses are welcome to come ask questions and receive answers. They provide a critical chance for the community to inform the CDI about how insurance firms operate. Insurance companies frequently send senior executives to these public gatherings. Following the meetings, homeowners can speak with those employees one-on-one.
It is the role of the CDI’s attorneys and complaint-handling employees to assist in the resolution of insurance claim disputes. The first step in informing them that you’re having an issue is to file a complaint. You or someone acting on your behalf must fill out a Request for Assistance (“RFA”) form in order for your complaint to be recorded and “official.”
1-800-927-HELP is the number for the CDI’s toll-free helpline (4357). When you register a formal complaint, the CDI contacts your insurance carrier, informs them of your issue, and obtains their perspective. The CDI will not “adjudicate” (i.e., serve as a court and make a ruling) factual or legal questions. You may be dissatisfied with the outcome of their complaint handling, or they may be able to assist you. The Department looks for patterns of problems that are comparable. They act once they’ve located them. They won’t be able to take action until they receive complaints that document concerns.
Important Reminder: If you attend a CDI public meeting or register a formal complaint via an RFA, take advantage of the chance to ask questions and inform the CDI about any insurance issues you are experiencing. Keep your remarks broad in nature. Avoid disclosing personal information to your agent, broker, or insurer, especially if you are underinsured. If you are underinsured, the CDI needs to know so they can include that information in their statistics, but if you are underinsured, going into too much detail on a CDI complaint form will hinder your chances of recovering in a lawsuit. This is due to the CDI’s inability to resolve factual or legal problems.
Local calamities, such as wildfires, may be given their own section on the Department’s website.
They also publish disaster notifications and new laws. ALE (Additional Living Expense) payments are two of the most critical. Your insurer must provide you with at least 24 months of benefits, as well as a list of ALE goods for which you can file a claim.
Insurance company claim files can be audited by the CDI to verify if they are compliant with the law. “Market Conduct Exams” are the name for these audits. Following the Northridge Earthquake in 1994, CDI officials discovered thousands of claim handling breaches, resulting in substantial fines, parliamentary hearings, a lot of negative press for insurance companies, and better settlements for many homeowners. The CDI has the authority to make “data calls,” which require insurers to give detailed information about their policies, pricing, and/or claims.
A: Disputes between individuals and insurers involving large sums of money or coverage issues are rarely resolved by the Department. The CDI can assist you in obtaining a copy of your policy, resolving small to medium-sized issues, and identifying and punishing bad behavior patterns. If you’re severely underinsured or your insurer is treating you unfairly, you’re better off hiring a private lawyer who specializes in protecting policyholders and managing “bad faith” litigation. For more information, go to the “Find Help” directory.
How long does an insurance company have to investigate a claim?
The insurance company has roughly 30 days to investigate your claim in most cases. The statutes of limitations in your state will also impact how long you have to file and settle a lawsuit.