5 Tips for Submitting an Insurance Claim
It’s a process that many aren’t very familiar with—filing an insurance claim.
Filing a claim can mean that, one, an unfortunate incident happened, and you need to cover the financial losses arising from the situation, or two, you’re interested in purchasing a policy for yourself but want to get into the nitty-gritty first. Or maybe you have other, more pressing reasons, which is why you’ve stumbled upon this blog.
Don’t worry—there’s no need to get intimidated by the industry jargon or the many kinds of policies available. We’ve covered what you need to know when filing a claim for insurance, so keep reading until the end!
What Is an Insurance Claim?
We’ll get into the basics first.
An insurance claim is a formal request to your insurance provider to cover the expenses resulting from a loss or a policy-related event. This is also what’s called a “coverage trigger,” which is an outline or clause in your policy that determines under what circumstance the insured will receive the payout.
There are different types of commercial claims depending on the insurance policy you have. Some examples are:
Property Insurance Claim
This type of claim can include situations on your business property, such as a burst pipe, property damage due to roof repairs, floor damage, or other renovation costs caused by negligence. You can also make a claim for lost or stolen personal property.
Life Insurance Claim
If you’re the beneficiary of a life insurance policy, you need to contact your insurance provider and have them walk you through the steps to handle the policy’s payout.
Once a claim has been validated, it could take anywhere between 14 and 60 days to receive the payment. However, it usually occurs within 30 days.
Auto Insurance Claim
Another common policy is auto insurance. This covers damages from a collision and third-party injuries resulting from the accident. One thing you should note is that most of Canada operates under no-fault insurance, where parties involved in the crash each file and settle claims with their respective insurance providers—regardless of who was at fault.
Before Submitting a Claim, You Should…
- Stay safe. You can’t say for certain when you’ll be out of danger, so take precautions and find a place to reduce further risk first.
- Document everything on your phone. This will be your primary source of evidence which you will submit to your insurance provider.
- List down everything that’s been damaged, stolen, or lost—and be honest! If you’re found to have committed insurance fraud, your claim could be thrown out or you could be thrown in jail.
- Avoid repairs. Resist the urge to fix things and leave it to your mechanic, contractor, or insurance provider to make the necessary adjustments.
- Prepare to speak to your insurance company. List what happened from start to finish and what you’ve done (so far) to mitigate further damage.
Here’s How to File an Insurance Claim
Once you’ve determined the damage and the coverage trigger, it’s time to submit a claim to your insurance provider. Here’s what you should do:
Tip #1: Notify Your Insurance Company Immediately
Contacting your insurance company right after the incident is crucial because it ensures that you meet the deadlines for filing claims. People tend to forget that claims are time-sensitive; failure to meet the deadlines can result in your claim getting denied. Notifying your insurance provider immediately will help start the claims process and enable them to gather more information to assess your claim.
Tip #2: Provide Complete and Accurate Information
You must submit specific information about the incident and damages or injuries sustained. This is why you have to document everything right after the incident because this could affect your payout. It helps your insurance company evaluate your claim and determine what, if anything, is covered by your policy.
The details you’ll likely need to provide include the date and time of the incident, what caused it, and the extent of the damages or injuries you or your property has sustained.
Tip #3: Understand Your Coverage
Understanding what is covered by your policy is crucial to help you avoid mistakes. This can save you time and effort and also prevent a denial of your claim.
Remember that understanding any deductibles or limits on your coverage is important because this could impact your payout.
Tip #4: Keep Records
It’s an obvious tip, but make sure to keep every record! This includes keeping track of all conversations with your insurance company, police records, medical records, as well as any receipts, invoices, or other documents related to the incident.
Tip #5: Be Patient
Claims can take a while to process depending on the incident, and it also varies depending on what policy you’re going after. Exercise patience and stay in touch with your insurance company to follow up on your case.
The Bottom Line
As with everything else in life, it pays to be prepared. You don’t have to feel intimidated by the process of filing a claim or the jargon-filled documents you’ll likely have to deal with. Just remember these tips, and the process will be a smooth experience from start to finish.
Get Personalized Insurance for Your Business with Contractors Insurance
Running a business is unpredictable—you could always encounter obstacles along the way. But there are many ways through which you can easily secure your business and mitigate financial loss borne out of risks and hazards.
Contractors Insurance is an award-winning insurance brokerage firm that’s trusted by many professionals and business owners across a multitude of industries. We offer customizable insurance solutions that specifically cater to your unique needs to ensure you don’t pay for unnecessary riders. With us, filing a claim for insurance will always be a smooth process.
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