Common Mistakes When Filing Storm Damage Claims for Business Insurance
Reducing financial loss depends on your company filing a storm damage claim, but there are several typical errors that could compromise your claim. Knowing these risks will enable you to negotiate the claims procedure more easily and guarantee that your company recovers as fast as possible.
Not Immediately Reporting the Claim
Not filing the claim right away is one of the biggest blunders business owners make. Most insurance policies have particular damage reporting deadlines; failing to comply could cause delays or denials of your claim. Contact your insurance carrier right after damage assessment during a storm. Opening a claim early guarantees you're within the policy's time limits, even if you're not sure of the full degree of the damage.
Inadequate Damage Documentation
A good storm damage claim depends on correct documentation. Many owners of businesses neglect to show enough proof of the harm before beginning repairs. One must take thorough pictures and films of the damage from several angles. Save receipts for any emergency repairs as well. Should you not fully document the damage, the insurance adjuster may undervalue or reject your claim.
Ignoring Business Interruption Losses
Often overlooked when submitting a business storm damage claim is not including damages resulting from business interruption. More often than only physical damage, storms can cause major operational downtime. Should your company have to close or suffer income loss from the storm, you should meticulously record these losses. While failing to consider these financial effects can result in a smaller payout, business interruption coverage can help offset them.
Making Complete Repairs Without Authorization
Following storm damage, it's reasonable to desire repairs fast to get your company running once more. Making permanent repairs without permission from your insurer, however, can backfire. Most policies call for you to allow the insurance provider time to evaluate the damage before repairs are undertaken. Rather, concentrate on doing interim repairs to stop more damage; always check your insurer before beginning any significant project.
Not Knowing Policy Exclusions and Restrainers
Many times, complicated exclusions and limits found in business insurance policies go unnoticed. For example, some storm-related damages—such as flooding—may not be covered by a basic policy and call for supplemental coverage. Ignorance of the specifics of your insurance may result in rejecting claims for damages you believed were covered.
Conclusion
Making a storm damage claim for your company can be a difficult procedure. Hence, it is imperative to avoid these typical errors. Important steps to guarantee a successful conclusion for your claim are promptly reporting the claim, documenting all damage, including losses of business disruption, obtaining repair permissions, and knowing the exclusions and limits of your policy.