How to File a Commercial Property Insurance Claim Without Delaying Your Business Recovery

Your business relies on having a workable commercial property location and generating revenues. When you have a loss, your business can be interrupted. An insurance claim can be a lengthy and overwhelming process at times. But you can get things going and get your business back on track for revenue generation sooner rather than later when you file the insurance claim timely with the right documentation. Here’s what you need to do. 

Preparing to File a Commercial Property Insurance Claim

When you have a loss, it is important to prepare to file the insurance claim so you can expedite processing.

Reviewing Your Insurance Policy

Your commercial property is likely covered by the insurance company for things like fire, theft, and vandalism. Review the policy terms to ensure that the claim is covered and you know what your deductible is. 

Documenting the Damage

The insurance company will need to have pictures and a list of items that were lost in the claim. Showing images of the damage helps claims adjusters know what was lost and how bad the damage really is. 

Creating an Inventory of Losses

When you have an inventory of losses, you can present this to the claims adjuster for processing. An inventory includes the item name, serial number if possible, purchase price, and picture of loss. A business insurance claim can’t proceed without an inventory. 

Gathering Supporting Documents

If you have supporting documentation, include it for the claims adjuster. This may include purchase receipts and invoices to prove the value of the items lost. You may also want to include bids from contractors that state what the repair costs will be. 

Steps to File a Commercial Property Insurance Claim

Now that you’ve prepared for the claim, here is the process of filing one with the insurance company. 

1. Contact Your Insurance Provider

Call your insurance company and ask to file a claim. You’ll be transferred to the claims department, where you will report the incident that led to the claim. The representative will ask you a series of questions about the incident. Do your best to answer them as thoroughly as possible.  

2. Schedule a Professional Assessment

The insurance company will send out a claims adjuster to review the damage and see the situation firsthand. They will document what happened. It is important not to fix things before the adjuster goes out to your site. If they can’t see the damage, they might deny the claim or pay less than what you are owed. 

3. Document Your Communication

Provide the adjuster with all your documentation of the incident. Keep a record of all communications with the adjuster so you don’t get lost in the mix of things or have something slip through the cracks. Be sure to ask the adjuster about loss of income coverage to ensure your business has the resources to continue operating while the claim is being processed. 

Managing the Claim Process Effectively

Managing the claim effectively is an important aspect of the claims process. You want to respond to the adjuster quickly and with the right information to get things moving.

Understanding the Role of an Insurance Adjuster

The insurance adjuster is there to determine the value of the claim. Keep in mind that the adjuster works for the insurance company and will want to minimize company losses. This is why it is helpful to get your own independent contractor’s quotes on repairs and keep receipts of items purchased. 

Requesting Advances if Necessary

The insurance company is not likely to pay an advance because it doesn’t know the full extent and value of the loss. But you can ask for incremental payments. This may start with construction costs and later be finalized with belongings. Business interruption insurance can also be paid early on in the process so you can pay your bills and continue operating as best as you can. 

Tracking Expenses for Business Interruption

When it comes to business interruption insurance, you need your business records. This can be from prior tax returns or from a bookkeeper’s log of income and expenses. The insurance company will want to verify that the payments are accurate. 

Avoiding Common Pitfalls in Insurance Claims

Here are some common pitfalls to avoid when dealing with insurance claims and insurance companies. 

Not Underestimating the Damage

Even an inch of water can cause considerable damage. Make sure you work with a remediation company and the adjuster to ensure your claim is valued for the total amount of damages and isn’t lower than what you are owed. 

Navigating Policy Exclusions

Every policy has exclusions. Keep this in mind when filing a claim. Be clear about how the damage occurred to avoid an adjuster saying it isn’t covered due to an exclusion. For example, a pipe bursting is covered, but an external flood is excluded from most policies. Make sure the adjuster knows where the water came from. 

Handling Disputes with the Insurer

You may disagree with the value the claims adjuster attaches to the damage or the property lost. Remember that having your own contractors give you an estimate of repairs will help you make the case that the damage is more than the adjuster is claiming. Receipts for purchases will also prove that you are incurring a financial loss on items damaged or destroyed. 

Tips for Accelerating the Business Recovery Process

Here are some tips to help you navigate the recovery process. 

Utilizing Temporary Repairs to Mitigate Damage

Insurance companies want you to mitigate the damage by fixing what caused the problem. For example, you will put a fire out or stop a water leak in the building as early as possible to reduce the overall damage. While this may seem like common sense, it isn’t always done and can be problematic in a claim. 

Communicating with Stakeholders

Let landlords and business partners know what is happening with the claim. You will need to rely on the claim’s business interruption insurance to pay your lease, and the landlord should be aware that there may be delays.

Exploring Financial Assistance Options

While you should only need to rely on the claim’s proceeds, you may need to get financial assistance. Check with local business groups on options to help with the financial burden of the loss while you wait for your claim to be processed.