Mistakes to Avoid With a Business Hazard Insurance Claim

Filing a claim with a commercial insurance company can be a detailed and involved process. It can also involve a myriad of moving parts at an already frustrating and potentially costly time. This article can help you avoid common mistakes when filing a business hazard insurance claim. It can also help you file a comprehensive claim according to your provider’s requirements.

After an unexpected event, filing a business insurance claim is a massive undertaking. It can also be stressful to handle paperwork and gather evidence while simultaneously dealing with your company’s daily demands. A law firm in your area may offer a free consultation to review your business hazard claim. A Corpus Christi commercial insurance claims lawyer can help you file a complete, accurate, and comprehensive claim. 

Avoid the Mistake of Not Fully Understanding Your Policy From the Start

You should closely scrutinize your business hazard policy, also called a business or commercial property insurance policy, to understand what insurance coverage you are entitled to receive. This is an important part of the insurance claims process. A careful review of your policy will tell you: 

• The detailed steps to filing a complete claim
• What your commercial policy considers covered losses
• Mandatory notification and filing deadlines
• What losses are named as policy exclusions 
• The coverage limits of your policy

Carefully review your current policies, as well as any new policies you decide to purchase to protect your business. Doing so can ensure you get the right amount of protection and understand the filing process, your rights, and the insurance carrier’s responsibilities.

Avoid Filing Your Commercial Property Damage Claim Too Late

Business owners should take action as soon as possible when filing a claim. You could also consider hiring a Corpus Christi insurance claims attorney to represent you who can focus fully on your claim while you concentrate on rebuilding or reopening your business. 

The Texas Department of Insurance (TDI) cites the following deadlines that insurance providers must meet when handling the claims process. While claims following natural disasters may allow for increased processing time, insurers generally have:

• 15 days to notify you of receipt of your claim
• 15 days to start investigating your claim
• 15 days after receiving all necessary information to approve or deny your claim, or request up to 45 more days to investigate (within reason)
• 5 days after claim approval to remit compensation 
• 30 days to notify you of suspected arson

You do not have to accept unwarranted delay tactics while dealing with the insurance adjuster. Knowing these deadlines is important since it can help you stay focused and on track and allow you to hold the insurance company responsible for doing the same. 

Avoid Filing Your Property Insurance Claim Without Sufficient Evidence and Documentation

Your insurance company will demand proof of damage (the reason for your claim) and the value of your compensation request. Filing an incomplete claim or one that contains inadequate documentation can lead to a delay, or worse, a denial.

When you prepare your claim, ensure you include:

• A complete insurance claim form
• A complete Proof of Loss form

Your claim should also include evidence based on the damaging event, which can include:

• Before-and-after photos and video
• Fire, police, and other official reports
• A detailed inventory or loss report
• Relevant receipts, invoices, etc.

You can collect or document some evidence immediately after the damaging event. You can collect other evidence later. Take time to build a comprehensive evidence collection.

Do Not Dispose of Damaged Property or Make Repairs Before Filing Your Claim

Document your losses as fully as possible, but do not dispose of anything until your insurance adjuster has inspected your property thoroughly. Damaged items can substantiate the extent of damage you assert in your claim.

In addition, you should take any necessary measures to ensure your property is as safe and secure as possible. You should not make unapproved permanent repairs, but you can board up damaged windows and doors and move (but do not throw away) potentially hazardous debris. 

Avoid Accepting the Insurance Adjuster’s First Settlement Offer

The temptation to accept an offer to settle your claim can be hard to resist. A speedy settlement offer, while tempting, can be inherently flawed. Advocate for yourself by allowing all known expenses and losses to become clear before accepting a settlement that might be lower than the amount you actually deserve.

Unfortunately, some insurance companies may employ underhanded or illegal practices to deny or delay a valid claim. You should also be aware of unscrupulous insurance practices and understand how Texas defines bad-faith insurance tactics. This knowledge (or hiring a Corpus Christi property insurance claims lawyer who is familiar with such practices) can increase your odds of a fair financial recovery.

You Do Not Have to Take on a Huge Business Insurance Company Alone

Damage or destruction of your business property or losses due to theft or acts of vandalism can derail your business. While you work on restarting your operations, a lawyer can manage all the claim-building details for you, including:

• Examining your policy in detail, including fine print and amendments
• Identifying covered losses and policy limitations of your business insurance coverage
• Creating a detailed case file of your covered losses, including documentation
• Handling all verbal, written, and other forms of case-related communication
• Protect you from bad faith insurance tactics

Choose a local law firm that is familiar with the laws and insurance regulations in your state. You can also opt for one that will offer a no-cost, no-obligation consultation.

Get Immediate Help With Your Business Hazard Insurance Claim

If your business suffered damages due to an event covered by your insurance policy, you should be able to get compensation from your insurance company. You do not have to fight for a fair settlement on your own or negotiate without legal guidance and support during this stressful time. 

Learn more about what mistakes to avoid with a business hazard insurance claim by contacting our consultation team at Carrigan & Anderson, PLLC, today. We can provide valuable insights into the claims process, as well as peace of mind that you have an experienced advocate on your side.