Running a small business involves some risks. Natural disasters, equipment failures, and accidents that result in injuries can put your business in a difficult position.
The best way to save your business from these risks is to buy a comprehensive business insurance policy. However, to make the most out of the claims process, you need to avoid these mistakes that small businesses tend to make when filing a claim.
1. Not Filing the Claim Immediately
When your store or office has been damaged by natural disaster or theft, you should first contact your insurer. Your insurance claim should be filed within 48 hours of the incident. If there is any delay, the insurer may be unable to validate your claim and refuse to pay for the damages.
2. Not Documenting the Damage
If you need to move your equipment to avoid further damage, it is advisable to take pictures of the scene. Documenting the damage will help you request compensation without any compromises as the insurer will be able to see the extent of destruction.
3. Not Reading the Policy
A common mistake that small business owners make is assuming that their policy will cover any and all damage. For instance, your insurance policy may not cover flood damages even if your city is prone to such disasters. In such cases, you need to buy a rider or flood insurance to ensure complete coverage.
4. Accepting Baseline Compensation
Accepting baseline compensation can be expensive for small businesses. If the insurer’s settlement does not meet your expectations, you can file an appeal. You can ask a third-party claims adjuster to assess your damage and explore the available options for refund.
These are a few insurance claim mistakes that small businesses should avoid. For assistance with your business insurance coverage needs and questions, contact the experts at CIA Insurance and Risk Management.
Post provided by Sophia Najjar, President | Commercial Risk Management (CRM)
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