IMPORTANT: What to do if you need to make a Business insurance claim
How to make a claim under your Business insurance that fully compensates you for the loss you've suffered
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At the time of the incident
Reporting the incident
Loss adjusters and assessors
Handling the claim
At the time of the incident
1. Don't admit liability
If you were responsible for the incident – or think other people might regard you as responsible – don’t admit liability. That doesn't mean you can't be sympathetic to the other people involved - just don't admit anything was your fault.
Reporting the incident
2. Report the incident rightaway
Inform your insurer or broker of the incident as soon as you can. Make a note of their claim reference number.
3. Report crimes immediately to the police
If the incident involves any kind of crime – such as theft or vandalism – inform the police immediately, and make a note of their crime reference number.
4. Fill in the accident book
If anyone has been hurt, make sure you fill in the accident book, and refer the situation to the person in your company who is responsible for Health and Safety. They must then notify the appropriate authority and ensure the relevant facts surrounding the incident are recorded.
5. Reporting accidents to the HSE
Under the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995 (or RIDDOR), it is a legal requirement to report accidents and ill health at work to the Health & Safety Executive.
You can do this online, using the Incident Contact Centre website.
6. Business insurance claim form
You may be asked to complete a claim form. If so, answer all the questions accurately. Add your own comments if you feel the form misses out important points.
Loss adjusters and assessors
7. Loss adjusters
Insurance companies often wish to investigate large or unusual claims. They may use their own staff or they may employ loss adjusters to do this – firms of independent experts who act as consultants in assessing whether a claim is valid and how much should be paid. Although reimbursed by the insurer, loss adjusters have a duty to act impartially.
8. Loss assessors
Loss assessors act for the person or company making the claim. They negotiate a settlement in return for a fee payable by the claimant (often a percentage of the claim). They include the personal injury specialists who advertise widely on television and elsewhere.
Handling a Business insurance claim
9. Handling claims against you from third parties
When an insurance company settles a claim covering your legal liability to a third party, they will normally pursue the case themselves – through the Courts if necessary – on your behalf and in your name.
10. Recovering losses from third parties
Although you may make an insurance claim, it would sometimes also be possible to pursue a claim against a third party. This can be the case if the third party was responsible for the incident that gave rise to the insurance claim. If you make an insurance claim, then – once the insurance company has paid out – it is entitled to whatever can be claimed back from the third party. Many insurance policies contain a condition that allows the insurance company to proceed against a third party even before they have paid you the insurance claim.
11. Allowing access to the scene of the incident
It is important to do all you can to give loss adjusters (or any insurance company representative) access to your premises or to wherever the incident occurred. In this way they should be able to assess the claim more quickly – and you should receive settlement all the sooner.
12. Getting help with Business Interruption claims from your accountant
If you need to make a Business Interruption insurance claim, speak to your accountant straightaway to help you prepare the claim. Business Interruption insurance includes the fees that accountants charge for the preparation of claims.
More about Business Interruption insurance . . .
13. Complaints procedure
If you’re not happy with the decision an insurance company has made about your claim, follow the complaints procedure to see if you can get the decision changed. All insurance companies have an established complaints procedure, and this is explained in their policy literature.
14. Be realistic . . .
. . . about the amount you hope to get out of the insurance company. The purpose of insurance is to put you back in the same position you would have been in if the accident or damage, etc. had not happened. So that means if you’re claiming for property that has been lost or damaged, don’t claim more than the property was worth. Many policies provide “new for old” cover: this means the insurance company will pay for or provide new property that is the closest available equivalent of what the old property was like when it was new. If you try claiming for anything more than this, you risk alienating the insurance company.
15. After a Business insurance claim . . .
When your claim has been settled, it’s a good time to take stock of your insurance arrangements and check that your cover is still adequate.
More info on changing the cover under your Business Insurance policy.
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