All business owners purchase business insurance hoping that they will never have to make a claim. It is easy to think that things will always be plain sailing.

But unexpected events such as storms, floods, fire and theft happen and can seriously disrupt and threaten your business.

This guide will outline the steps you need to take should you need to make a claim on your business insurance and how to get your business back up and running following an insured event.

Make a business insurance claim

There are several steps you will need to take in making a business insurance claim. The scope and complexity of claims will vary, depending on the type of claim and losses involved but the same steps are generally applicable to all claims.

In the first instance, you should contact your insurance company, many have an emergency contact number to call if your business property is damaged. 

It is important to follow your insurer’s advice, they may require you to get emergency repairs to secure your property and ensure safety. If it is safe to do so, take photos of any damage prior to emergency repairs being carried out. Ensure that you keep any damaged items initially.

You will need to submit a claim form to your insurance company giving details of the damage or loss.

Your insurance company will appoint loss adjusters to investigate your claim, they may dispute your claim or say that you were underinsured.

If your claim is a large or complex claim, it may be worth using the service of a loss assessor, who will negotiate with insurers on your behalf to establish the full nature and scope of your loss including your material losses (contents and stock etc.) as well as the extent of building damage. You will have to pay for this service yourself.

A loss assessor may also manage your business interruption claim. Meaning that your business will be financially protected while you are unable to operate. 

Your insurance may also cover your business for the cost of temporary alternative premises until your premises can be reoccupied.

It is important to ensure that you are familiar with all the details of your business insurance policy, preferably before you need to make a claim.

Especially important is to check the excess on your insurance policy and consider whether it is worth making a claim. For smaller claims, the effect on your business insurance premium in the future may outweigh a claim settlement.

You will need to gather and submit the necessary documentation, as required by your insurance company, such as photos, reports, and financial records. Ensure that you are as timely and accurate as you can be in giving information during the application process.

Consumer protection code

Under the Central Bank’s Consumer Protection Code, regulated insurance companies are required to:

  • Have a written claims procedure in place.
  • Assist you if you need to make a claim and update you about new developments which affect the outcome of your claim within 10 business days of knowing about them.
  • Let you know their decision on your claim within 10 business days of making the decision. When a claim is not settled in your favour, they should explain, in writing, the reasons for this and also provide you with details of how you can appeal the decision.

Timeframe

In reality, business insurance claims can be a lengthy process and insurance companies may not communicate regularly with you, beyond the minimum required. It is important to keep in touch with your insurer and, especially, to respond promptly if they request information etc. 

Your insurance company may offer you a lower initial settlement and you will need to decide if you wish to negotiate with them if you are not satisfied with their offer.

There is no set timeframe to settle an insurance claim and the length of time the claims process takes will depend on the nature of claim. More complex claims may need expert opinions and reports, sometimes from several people before the claim can be agreed.

Claim made against you

If a claim is made against you, your business insurance company is under no obligation to inform you or obtain your consent before they settle the claim, although you may be able to contact the claims manager. Your insurer will have a complaints procedure you can follow if you are unhappy with the settlement.

Compare insurance

For business insurance you can rely on when things go wrong, get a quote from Compare Insurance. We work with leading business insurance partners to ensure that your business is comprehensively protected at a great price. 

You have worked hard to build up your business so get the best business insurance to protect it. Check out our articles on all types of business insurance and use our online assessment to get and compare great quotes for insurance for your business.

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