4 Things To Avoid When Filing For A Business Insurance Claim

One thing that is constant in business is risks. Risks such as natural disasters, equipment failure, and client injuries can deal a massive blow to your business. These risks are the reason why commercial insurance is vital in a company. Having your finances secured is always a priority.
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However, business insurance does not fully guarantee reimbursements for damages. The process of filing claims can sometimes be complicated—causing some businesses to take significant damage. Here is a list of mistakes that you should avoid when filing commercial claims.

1. Not fully understanding your policy
   Many business owners assume that their commercial insurance covers pretty much all damages caused by natural disasters and such. However, this assumption is incorrect and can be a waste of time.
   
   Insurance policies do not cover everything that you expect. Always take the time to be knowledgeable about your policy’s coverage. Being educated on your policy can help you identify further coverage needs, which is vital in protecting your business.
   
   
2. Not informing the insurer of the situation immediately
   When there’s a business-related problem that occurred, you should be quick to contact your insurer. Not only will you describe the situation vividly, but adjustments to the claim would also be more manageable.
   
   Reporting the situation immediately to the insurer can be the difference between being covered and not. Most insurers would provide teams that will assess the damages on-site, meaning the earlier they arrive, the more favorable. Also, note that failure to report the situation within 48 hours may result in being refused benefits. 
   
   
3. Not documenting proof of damage
   The insurers would always ask for evidence. They will never grant you pay for an unfounded claim. Make sure to photograph the damages that can be costly to repair immediately.  Also, it would help if you documented all of your conversations with your insurer. Remember to note the time, date, and substance of the discussions and document all mailed correspondence. 
   
   
4. Not keeping the damaged goods/property
   Never think that photographs and other documentation are enough proof. Physical evidence is crucial in proving your case to the insurer. Make sure to avoid throwing away the damaged goods while also preventing further damage. Your insurer can deny you coverage if negligence to avoid further damage is observed. 

Conclusion
In these unfortunate situations, your insurer’s job is to help you get back as quickly as possible. However, you must always be well-educated in filing a claim. This knowledge might be the difference between bouncing back well and struggling to put things together. 

At Family Auto Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (313) 285-9042 or Click Here to request a free quote.