filing a claim

Top Mistakes Businesses Make When Filing a Claim

After a disaster or accident, it’s important to file your claims correctly. When businesses fail to file a claim, they might not get the full reimbursement or no payment at all! Or sometimes, there could be a delay in payment. To avoid these troubles, make sure that you take the time to correctly and adequately file your claims. Here are some of the most common mistakes businesses make when filing a claim:


Waiting to Make a Claim

After an incident occurs, call your insurer immediately. Don’t wait until after you’ve cleaned up. By calling your insurer right away, then can assess the full damage. If you have cleaned, it could mask how bad the situation actually was. And if you did work to fix the problem, then you might not be reimbursed for all that labor.


Not Properly Documenting

To ensure that you get as much as you can from a claim, document the damage. Sometimes it is impossible to wait to begin the cleanup and repairs. By taking good quality photos and videos of the incident, it can help strengthen your claim. You should also document the repair process. As part of the cleanup effort, try to keep the damaged goods to show the inspector. It is clear evidence of damage.


Not Understanding Your Policy

While insurance can sometimes be confusing or difficult to understand, it’s imperative that you are aware of what your policy includes. By knowing your insurance policies well, you can make sure that your business is sufficiently protected. If you don’t read your policy, then you may assume some things are covered when they actually are not. A common example is with flooding. Your business won’t be protected from flood damage unless you have a separate flood insurance policy.


Not Appealing an Estimate

Sometimes your insurer will give a low estimate for the damage. If you feel like it’s too low, you can always appeal the estimate. You can hire your own adjuster to give an estimate. You may need to have a third-party mediator to negotiate the final amount. However, in the event of a big disaster, appealing an estimate can be huge financial help.


Not Being Prepared

Preparation for disaster is the best defense. First, you should talk to your insurance agent to make sure that your business has the right insurance policies in place. Once that’s done, you can do other things to get ready. For example, you should have an inventory list handy in a safe location off premises. You should also have physical safety measures in place, such as a carbon monoxide or fire alarm. You can also have things like a sprinkler system or an alarm system. The more you do to prepare for a disaster, the better the chances of recovery.


When it comes to making a claim, talk it over with your insurer before something happens. It’s good to be familiar with the process before you have to make a claim yourself. Making a claim correctly may seem complicated, but if you are aware of what needs to be done, it will make it easier for your business to bounce back. You can also ask your insurance agent about the coverages you need to help protect your business. It’s never a bad idea to be prepared.


Call 888.754.8299 to speak to an Encharter agent about protecting your business and how to make a claim!

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