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Tips on Filing an Insurance Claim

Many purchase insurance without properly understanding the process of a claim. Most reasons being to simply comply with their banks loans or purchase a car. However, this can lead to experiencing problems   when they actually get into an accident. Frustration rises as they try to solve the unfamiliar issues based on their expectations rather than putting into consideration government regulations and the rights of an insured.

One of the most frequently asked questions is the time it takes to receive compensation. The insurance industry is supervised by the government, and although it varies from state to state, almost all states stipulate insurance claim procedures and compensation periods.

For example, once a claim is opened, the insurance company must notify the claimant that the claim has been filed within 15 days. Another is that if the insurance company denies your claim, it must provide sufficient reasons based on your insurance declaration.  Let’s take a closer look at what you can do to receive proper compensation on a claim.

 

Take time to review your policy declaration

If you have questions on your coverage, contact the insurance company or your agent.

 

Inform the insurance agent of the damage

 Before contacting your insurance company or agent, write down details on the accident. You will be talking to your agent or insurance company multiple times. To keep the story consistent, it is best to keep a memo rather than rely on your memory every time.

 

Assess the damage as accurately as possible

It is important to provide accurate information when reporting a claim. You may be tempted to give an over-estimation of the damage in order to secure enough payout.

However, insufficient evidence or data to support the extent of the damage will result in unnecessarily longer processing time and you may receive less compensation than you’d want.

Reporting an over estimation, for the damages on a commercial property with a co-insurance clause, may backfire and also put you in disadvantage. Accurate estimation of the damage is crucial in deciding whether it’s worth opening up a claim.

 

How to get an accurate estimation of the damage

Asking a professional for an estimation of the damage is recommended. For example, calling a roofing company if you suspect hail damage. They will be able to estimate the severity of the damage and the cost to repair it.

 

Keep a note on the phone conversation you had with the insurance company

If you write down when and what you talked about, you can use it appropriately when needed. Afterall, claim procedures are processed by humans and there is the likely case of mistakes.

 

Gather all detailed evidence of loss

Insurance companies pay out for damages based on proof of damage or loss. In other words, simply hoping that that adjusters will provide you with sufficient coverage may not be enough. The more concrete and detailed proof provided, the easier the claim process will be.

 

Keep a copy of all the documents submitted to the insurance company

When submitting documents, it is recommended to keep at least one copy for yourself in case the mail is lost or misplaced. Since insurance companies are also for-profit, they acknowledge the importance of providing quality service to clients. Therefore, each insurance company strives to process claims quickly and fairly. As for insureds, knowing what to expect and what they can prepare to facilitate claim process will make the whole experience smoother.

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Importance of Business Insurance

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The economy is gradually recovering from the pandemic, but there are still many business owners that are facing difficulties. This is due to the fact that other than sales; businesses are still exposed to various types of property and liability risks.

In fact, these risks can be more threatening than losses from poor sales. What may start from a small property damage or bodily injury accident may lead to lawsuits. Depending on the outcome, this can cause great financial hit to a business.

Major corporate companies separately hire risk management specialists to identify the risks in advance and come up with strategies to minimize the risks. However, the reality for small business owners is that they must juggle all the various roles from a chief executive to human resources.

Occupied with all the roles, it becomes difficult for you to identify and respond to underlying risks. The cost of purchasing insurance may also come as daunting.

Therefore, it is very important to mitigate the risk of accidents by obtaining business insurance. Below are answers to the most commonly asked questions.

 

Q) Shouldn’t insurance premiums go down when business is difficult due to the economic recession?

This is what most policyholders want. However, in reality, the more difficult the economy is, the higher the probability of accidents.  Therefore, insurance premiums tend increase when the economy is bad.

 

Q) Why must I have business insurance when business is already difficult?

If your business is already having financial difficulty, getting involved in an accident result in a bigger damage to your business.

Without any insurance you are taking needless risks on your own. Not having the proper coverage is also an issue.  Even if you receive compensation, it may be less than the actual amount of damage.

Therefore, it is recommended that you consult an agent and purchase a business insurance that can protect your business and your inventory (your property).

Another reason to have a business insurance in place is due to the fact that some states require insurance coverage, regardless of the size of the business.

A majority of commercial building or office building owners also require its tenants to maintain insurance through rental contracts.

 

Q) Does insurance coverage differ depending on the size of your business?

The essential coverages for small businesses owners are business property, General liability, and business income.

Business Owner’s Policy (BOP) is an insurance product that targets small business with the above coverages combined.

Each insurance company offers different coverage types depending on the business class. Therefore, it is important to check which coverages best suit your business.

If you run a big business, Business Package Policy (BPP) would be a better match. This product offers more customizable options by allowing you to add various coverages in addition to property and liability.

One important fact to note is that neither BOP nor BPP policies offer flood coverage. This is a type of coverage where a separate product must be purchased.

 

Q) What are the main factors that determine commercial building insurance?

One of the most important factors is the building’s exposure to fire hazards. Well-maintained buildings with fire preventive measures have a lower premium than those that are not.

For example, a building with explosive manufacturing will have a higher premium compared to a travel agency office.

There are many variables used to calculate the fire risk rate. Among them, building materials and construction types account for the largest portion.

Fire hazard ratings are determined through state-licensed inspectors.

They typically sign contracts with insurance companies to rate buildings’ structures. Below are five standardized rating systems that determine fire hazard ratings:

-Construction Materials

-Location

-Occupancy

– Fire Protection Measures

– Exposure

 

Q) How does claim histories affect insurance premiums?

Business insurance has a different premium rate system compared to auto insurance. In other words, the premium is not increased based on a predetermined formula like auto insurance.

Each insurance company has different guidelines but, frequent claims or large payout amounts may lead insurance premiums to increase. In some cases, an insurance company may decide to non-renew your policy.

 

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How Roof Maintenance Protects Your Business

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Simple answer: it saves you money. A small roof problem can easily turn into a disaster. When it gets to the point of disaster, you usually have other problems than simply replacing the roof. This could affect your business staying open, discourage customers, and even increase your insurance premiums.

What are some major threats to your roof? 

A commercial roof’s lifespan, when properly built, should last up to 40 years. Fully replacing it before its time can be costly. Luckily this is easy to manage! For instance, regular inspections keep you aware of potential issues. If you catch a problem early, it can save a lot of money and headache before it becomes more serious. You should also be inspecting the roof before and after major weather events. Wind, rain or hail damage is unavoidable from a storm, but if you have everything up to date it will save costs on potentially bigger repairs. Here are a few things that you can look out for that will help your roof and business in the long run:

  • Mold/Moss Build-up – tends to grow out of sunlight, and if roots are left too long they can tear up the roof layers
  • Water Pooling – leads to faster deterioration and has the potential to worsen the integrity
  • Dirt & Debris – clogging the drain pipes leads to water build-up
  • Wildlife/Pest Entrance – if there is enough deterioration, wildlife can find a way in leading to sanitation issues and can hurt your business’ image

Prevention Before Disaster

Keeping these threats in mind, you can be more prepared to keep your business running. Small costs here and there to fix issues can be the difference between keeping your doors open and shutting down completely. Take a moment and think about what the worst case scenario would be. It’s shutting down your business so you can spend more money to fully replace your roof, isn’t it? We know it can seem pointless to spend money on small repairs, but it will be worth it! Just a little time and effort keeps your roof up to date. For example, it’s a great idea to take regular pictures, keep drains clean and make sure all cracks are sealed. That doesn’t seem so hard!

Who doesn’t want lower insurance premiums?

That’s right, a nicely maintained roof can even help you save on insurance. One of the first things a carrier will look at is the condition of the roof. For one thing, they see higher wear and tear as a higher risk. If your roof looks like it can blow away in the next storm, they’re not too happy about taking on that risk. However if you continue to improve the appearance and safety of your roof, this can provide discounts and lower premiums. If you’re looking for lower premiums, let us help you with a quote from one of our very knowledgeable agents. 

How have you kept up with roof repair? Leave a comment below to let us know all you’ve done to keep your business covered.

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Your employee was injured at work. What next?

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Your employee was injured at work. What next?

When your employee is injured on the job, it is important to move quickly in providing medical attention and opening a workers compensation claim. Doing so will help minimize the total cost and the severity of the injury.

Following these three steps will help employers plan ahead and be prepared in the event of an injury.

Step 1 – Preparedness is key

Business owners can prepare by finding ways to prevent workplace injuries. In the event one occurs, finding ways to respond quickly is critical. These preventative and response methods include:

Planning to prevent injuries is the best way for business owners to reduce risk. However, prevention is not always possible, so preparing for the worst is essential.

Step 2 – Respond quickly after injury

  • Evaluate the scenario – Move the injured to a safe place and evaluate the injury. Take note of the severity of injury and what caused the accident.
  • Help the injured – If the injury is minor – such as scrapes, cuts and burns – treatment using first aid supplies may be all that is required. If the injury necessitates more serious treatment, seek professional help or emergency medical services.
  • Complete an incident report – Collect and keep information and any evidence relating to the incident as quickly as possible. Write down the details of the incident and secure witness statements. Gather evidence of the incident by collecting surveillance video, photos, equipment, etc. Incident reports should be made even if employees say they are fine. They may seek medical attention later in time.

Being prepared to respond to an accident will help lessen panic, thereby allowing business owners to remain calm and collected.

Step 3 – Stay committed to communicating and following through

Business owners should work along with their employee on opening a workers compensation claim with the insurance company.

Keep in mind that it is favorable to the business owner if he or she maintains communication with all parties related to the incident. This includes the claims adjuster, insurance agent and injured employee.

In the event the injured employee sues, it is important to maintain open communication. More specifically, business owners should provide attorneys and adjusters with information and documentation relating to the claim. Settling a claim early in the process can prevent an expensive, drawn out lawsuit.

 

Taking steps to prevent workplace injuries from occurring in the first place will help avoid expensive claims and potential litigation. However, if an injury does occur, being prepared and responding quickly can help minimize the severity of the injury and protect the employer.

If you have any questions, please contact us here.

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