How do I file a business insurance claim?
When a fire, accident or theft occurs at your business:
- Contact your insurance agent and company right away. Any burglaries
or theft should also be reported to the police immediately.
- Read your insurance policy so that you know what your responsibilities
are to your insurance company after a loss.
- After a disaster, take steps to protect your property from further
damage by making temporary repairs. If immediate repairs to equipment
are necessary, save the damaged parts in case the claims adjuster
is interested in examining them.
- Get at least two bids on the cost to repair or replace damaged
property.
When filing a business interruption claim, be able to show the income
the business was generating both before and after the loss. Keep detailed
records of business activity and the extra expenses of keeping your
business operating in a temporary location during the interruption
period. If you are forced to close down, include expenses that continue
during the time that the business is closed, such as advertising and
the cost of utilities.
If you are unhappy with how your claim was handled:
- Talk to your insurance agent or claims manager to explain your
point of view.
- Call the consumer affairs or complaint department of your insurance
company and tell them your story and why you think you deserve
a larger settlement.
- Contact your state's department of insurance about your
problem.
- If you've tried all other options, consult an attorney who specializes
in insurance matters to see if he thinks you have a valid claim
that is worth a lawsuit. Provide the lawyer with all relevant
documents and a copy of your insurance policy. Tell your attorney
about any settlements offered by your insurance company and the
attorney will judge whether you have a legitimate case that might
result in a much larger settlement if brought to trial. Attorneys
work on an hourly basis or on a contingency basis in which case
they receive a portion of whatever settlement you ultimately receive.
Get your lawyer’s fee structure in writing before you pursue your
case, and make sure you are kept current on the status of the
case as it progresses. You must agree to any settlement reached
between your attorney and the insurance company before it is made
final.
With Permission © Insurance
Information Institute, Inc. - ALL RIGHTS RESERVED -
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