As a small business owner, you have consistently paid your insurance premiums. When it's time to file a claim, it can be a shock to have your claim denied and forced to pay out of pocket – especially when you thought you were covered. These are the most common mistakes that small business owners make:
Failed to Understand Covered Perils
Insurances only cover specific "risks". Business owners may think they are covered when a facility is damaged by floods, fires, earthquakes or other natural disasters – but this may not prove to be true. You need to know what your insurance covers and understanding the fine print is not easy. Talk to an insurance agent and make sure you fully understand what is covered and what is not, and put a policy in place to fill the gaps.
Not filing a claim quickly
If you are waiting for long submission of a claim makes the whole process much more difficult and can lead to a claim being rejected. Instead of trying to repair your restaurant, call your insurer so that an adjuster is sent to your facility as soon as possible after the incident.
To not fully document the damage
Make sure you take pictures and videos of all areas who was injured. The details of damaged equipment, inventory or goods must be very careful. Keep a log of your conversations with your insurance company and copies of any correspondence. Your insurance company is much more likely to pay what you earn according to the terms of your insurance when the losses are carefully documented.
Discard damaged goods
If you throw away the damaged goods, you may lose the opportunity to get compensation for the loss. You have taken pictures and filmed but must keep the damaged goods so that the insurance company can confirm the losses. Never admit wrongdoing as this may cause your insurance company to deny your claim. Let the investigation of what happened continue without admitting wrongdoing.
Failure to cooperate with your insurer
Your policy will state that you must cooperate in the investigation of what happened. When they ask for documentation, you must be prepared to send it to them on time, including video, photos and receipts. If you wait or fail to send this information, your claim may be rejected, or it will take much longer before any claim is received.
Paying claim out of pocket
If a customer slips and falls and is injured on your property you may feel inclined to pay their medical bills – a mistake. Your insurance will not reimburse you when you try to get the cost back. Many insurance policies prevent policyholders from making these payments, and if you do, your claim may be denied. have the coverage you need, at the lowest possible prices.