Do You Know How to File a Business Insurance Claim?
What happens if your Alberta small business is vandalized or a customer is injured on the premises. What if your business is damaged by a fire? What do you know about filing a business insurance claim?
When you have business insurance you are protecting your business financially. It’s important to review the details of your insurance policy for your Alberta business so that you understand what is covered and what is not covered.
If you own a small business in Edmonton, Calgary, Red Deer, Lethbridge, Medicine Hat, Fort McMurray, or anywhere else in Alberta, your Western Financial Group insurance expert will give you top-notch commercial insurance advice at the right value for you.
Filing a business insurance claim
After a covered loss, such as a fire, theft, vandalism, or severe weather event, you’ll want to get your Alberta business up and running as soon as possible. Filing an insurance claim is an important step in this process.
When you submit a business insurance claim, you are taking a positive step to recover financial losses caused by an insured loss.
An example of a business insurance claim that would typically be approved:
Your Alberta business has been vandalized and its windows smashed. Your commercial property insurance can help pay for the cost to repair your vandalized store and smashed windows.
An example of a business insurance claim that would typically be denied:
There was a sewer backup in your business’s basement causing water damage and some stock was ruined.
Without sewer backup coverage added to your business insurance policy, you can expect to pay for the cleanup and to replace the damaged stock yourself.
How to file a business insurance claim:
- Notify the police if necessary, such as in the case of vandalism or theft. Have your police report and its number ready when you contact your insurance provider.
- Contact your insurance provider as soon as possible after the incident. Do not wait because insurers usually have a specific time limit during which you must report a claim.
- Have you documented the incident? Have a written description of the incident and damage and take photographs or videos of the damage to your business. Have receipts, invoices, or estimates for damaged property or equipment.
- Keep records: Keep records of all communication with your insurance provider, such as emails, phone calls, and written documents. Write down the name of the insurance representative handling your claim. Document all discussions.
- Complete any forms: Your insurance provider will give you a claim form. Do not delay filling it out. Make sure that you fill it out accurately and provide all needed details.
- Work with the adjuster assigned to your claim: Your insurance company will send an adjuster to assess the damage. You need to be prepared to provide any requested information. The adjuster's report will determine the amount of your claim.
- Get replacement or repair estimates: Get several repair or replacement estimates and give them to your insurance provider.
- Review the settlement offer before accepting: Review your settlement offer carefully. If you disagree, you can negotiate or provide additional evidence. If you accept the offer, be sure to follow your insurance company’s instructions for receiving the payment.
Reasons why your Alberta business insurance claim could be denied:
Your incident isn’t covered under your business insurance policy
Not everything is included in an insurance policy. For example, you didn’t get sewer backup coverage added to your business insurance.
You drive your personal car for business purposes, but you do not have commercial auto insurance and you get into an accident, which would not be covered as a result.
You file a fraudulent claim
Insurance claims intentionally causing damage or loss may be denied. Insurance is intended for accidental and unforeseen events, not fraud.
Insurance fraud is illegal and can lead to criminal charges, fines, or imprisonment.
Failure to renew or pay
If you don’t pay your insurance premiums on time, or don’t pay at all, it may result in your policy being cancelled and your claim denied.
Unapproved modifications to your business location or its operations
Your claim could be denied if your small business makes significant changes to its operations or property without notifying your commercial insurance provider.
Failure to disclose information about your business can result in your claim being denied.
Make sure that your Alberta small business has the business insurance coverage it needs. If you need to make a claim, you’ll want to be financially protected against an accident, mishap, or incident.
What kind of insurance coverages do Alberta businesses need:
- Commercial general liability insurance
- Commercial property insurance
- Course of construction insurance
- Pollution insurance
- Errors and omissions insurance
- Business interruption insurance
