Commercial insurance is one of the best ways to protect your business in California. When something happens, it provides you with the financial resources to overcome the situation. However, filing a claim is not easy, because insurance companies are constantly fighting fraudulent claims. Therefore it is really important that when you file a claim against your commercial insurance you follow all the proper procedures to get the full value of your claim. Here are four common mistakes business owners make when filing a claim that you should avoid:
Your insurance company is your partner. So anytime anything happens, even if it doesn’t end up leading to a claim, you should contact them. Waiting to file causes a lot of confusion. First, insurance companies are not sure the damage and the accident are connected. Secondly, they won’t understand the severity of the situation as they assume that if it’s severe, you’d contact them immediately. Finally, there is a statute of limitations on claims, so the sooner you file the better.
An important part of filing a claim is to show proof of damages. There are a number of ways to do this including taking photographs of the damages and providing receipts for their replacement. Immediately after an incident, make sure that you collect evidence of the damage. A good idea is when you speak to your claims adjuster, to ask them about the process of filing a claim. That way you can begin preparing the documents you will need down the line to prove damages.
When your business has been damaged, your first instinct will be to clean it up. However, you need to leave the property as is until the insurance adjuster can come and take a look. This is a really common mistake because most business owners are trying to prevent as much disruption to the business as possible. Insurance adjusters are pretty good about coming out for inspections right away and once they are done with the inspection, you can clear the damaged property.
The claims process can be pretty arduous. It takes a lot of investigation, paperwork, and time. Once you file a claim, make sure to check in routinely with your insurance adjuster for progress reports. They may need something to finish your claim. Just routinely follow up with a phone call or an email to get a progress report. Otherwise, you may not end up receiving your compensation.
Understanding the claims process in California is critical so you can avoid any mistakes. At Panorama, our team can help. When you purchase a commercial insurance policy from us, we’ll review your coverages and the claims process. That way if anything happens, you’ll know exactly what you need to do to keep your business protected. Give us a call and we can get started.