5 Common Insurance Claims Mistakes to Avoid

Five Common Insurance Claims Mistakes to Avoid

Mike Mishima, Vice President of Chief Claims Officer at DTRIC Insurance, says filing a claim for a loss or damage can be a stressful time for a business. He shares five common mistakes that business owners make that can impact a claim.

1. Not understanding the policy

Policy jargon can be long and confusing. Many business owners assume that their insurance policy covers all sorts of incidents like floods or business crimes. However, that may not be the case. Review your policy carefully and make sure to understand all the coverage details. If anything is unclear or confusing, reach out to your insurance provider for clarification.

2. Waiting to file a claim

Reporting a claim as soon as possible can expedite the claims process in several ways. Details of the loss are freshest immediately after the loss and be reported with the most accuracy. It’s also important to file the claim within any identified timeframe under the policy terms. Be sure to review the policy details with your insurance agent to reduce the risk of a potential heavy financial loss.

3. Admitting fault or taking the blame

Insurers will advise business owners to refrain from admitting fault, even if it appears to be the most logical thing to do. Admitting fault may make it challenging for the insurer to negotiate with the other party and settle the claim. As a result, the business owner may end up paying more than necessary or being held liable for damages.

4. Not documenting the details

Document the damage thoroughly to ensure you receive the best payout possible for your claim. Take as many pictures as possible to capture every aspect of the damage. It’s also important to record the date, time, and location of the loss. Take note of any conversations or communication at the time of the damage. Document everything you can and provide as much information as possible to ensure that you get the best possible outcome.

5. Discarding damaged goods

While it may seem logical to throw away items that have been damaged by water, fire, or other types of damage, it’s important to keep them. They can be used as evidence to support an insurance claim. Without evidence of the damage, it’s harder for the insurance company to verify your claim and assess the amount of compensation you should receive. Keep damaged items until your claim has been fully processed.

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