Snowstorms can wreak havoc on business operations, particularly when work vehicles sustain damage. Filing a claim for loss of use can help businesses recoup some of the financial setbacks caused by such disruptions. Here’s what you need to know about filing a claim for loss of use due to snowstorm damage.
Understanding Loss of Use Coverage
Usually, a thorough commercial auto insurance policy covers loss of usage. It pays the policyholder back off for expenses paid when the insured car is not in use because of a covered event, say a snowfall. This could include extra spending needed to keep operations running or rental car charges.
If a business vehicle is damaged in a snowstorm—due to falling debris, icy road conditions, or hail—comprehensive coverage generally applies to the repair costs. Loss of use coverage, on the other hand, compensates for the operational interruptions caused by the vehicle’s unavailability.
When Can a Business File a Claim?
To file a claim for loss of use, the damage to the vehicle must meet the following criteria:
- Covered Event: The snowstorm or related incident must be listed as a covered peril in the policy.
- Proof of Loss: Documentation of the damage and its impact on the business’s operations is required. This can include repair estimates, receipts for alternative transportation, or evidence of lost revenue.
It’s important to notify the insurer promptly to ensure compliance with claim deadlines.
Key Documentation to Support the Claim
Insurance providers typically require detailed documentation to process a loss of use claim. This may include:
- A police or incident report, especially if the damage occurred on public roads.
- Photographs of the damaged vehicle and the conditions leading to the damage.
- Invoices for rental vehicles or other operational expenses incurred during the downtime.
What’s Not Covered?
Policies often exclude coverage for:
- Pre-existing damage.
- Losses resulting from negligence, such as failure to prepare the vehicle for severe weather.
- Incidents occurring outside the geographic scope of the policy.
Conclusion
You can get some relief from the financial strain that comes with submitting a loss of use claim if a snowfall damages your work car and disrupts your business operations. If you want your claims procedure to go smoothly, study your policy and keep the correct documents.