Business Insurance: 4 Mistakes You Should Avoid When Filing Claims

It is crucial to do things right when a disaster, such as a flood, occurs and you want to get your business back on its feet quickly. Business insurance policies can be helpful in this recovery effort. This article discusses some mistakes that business owners should avoid making during the claims process.

Delayed Notification

Always inform your insurer as soon as your business suffers any damage resulting from a covered risk. That prompt communication will enable the claims process to start quickly so that you can receive compensation in time for you to restore your business to a functional state.

Inadequate Documentation

It is imperative for you to commence recovery efforts quickly so that your business can start operations after a disaster. However, those recovery efforts should not begin unless you have documented the magnitude of the damage that the business suffered. For example, don't start cleaning the flooded floors until you have taken several pictures and recorded video clips of that damage. The documentation will provide proof of the damage that occurred. It will then be hard for the insurance assessor to dispute your claim for compensation.

Discarding Damaged Products Prematurely

Don't be contended with only documentary proof of your loss. Make sure that you keep any evidence of the loss that your business suffered. For example, don't get rid of the damaged insulation in your business premises. Pile this physical evidence somewhere safe on your property so that the insurance company will see those damaged materials when they come to assess the extent of the loss that your business suffered.

Not Appealing the Estimate

The adjustors sent by the insurance company can sometimes give a low estimate of the loss which a business suffered during a disaster. It is wrong for you to do nothing about that estimate in case you think it is too low. File an appeal or enlist the help of an independent adjustor so that you can convince the insurance company to offer you higher compensation. Otherwise, you stand to spend a lot of money which would have been avoided due to the foresight that you had in buying that business insurance policy.

Most mistakes that business owners make can be avoided if these individuals work closely with professionals, such as business insurance brokers at companies like National Corporate Broking Pty Ltd. Get professional help to avoid the hurdles that can cause a claim to be delayed or denied by the insurer. This ensures that your claims will be paid faster.