You’re running a business and have a lot on your plate. Managing operations, sales, employees, and finances — it’s a hectic job. Now, imagine dealing with an insurance claim on top of it all. By avoiding some common mistakes, you can make this process easier.
At Colne, our years of experience and expertise in insurance and risk management have given us the perspective and tools to guide businesses safely through these potential hurdles. We’re here to shed light on some of the most common insurance claim mistakes and how you can avoid them.
Mistake 1: Not Reporting Claims Promptly
Let’s say you’re in a car accident, but instead of calling your insurance company immediately, you wait a couple of weeks. That delay can result in denied claims or a significant compensation reduction. It’s much the same with business insurance claims.
Tips to Avoid This Mistake
Consider setting up a system for reporting claims promptly. This could include training staff to identify potential claims and report them immediately.
Mistake 2: Lack of Proper Documentation
Do you remember the game of “Chinese whispers” or “Telephone” from childhood? The original message often got lost as it passed from person to person. The same can happen when you fail to document claims accurately and completely.
Steps for Effective Record Keeping
Maintain a thorough paper trail for each claim. This should include incident reports, photographs, and any communications about the claim.
Mistake 3: Insufficient Coverage
Underinsurance is like heading into a storm with a lifejacket full of holes. It offers some protection, but when the waves get rough, it won’t keep your business afloat.
How to Get Adequate Coverage
Work closely with a knowledgeable insurance broker who understands your business needs and can guide you to the right coverage levels.
Mistake 4: Ignoring Small Claims
Ignoring small claims is like to dismissing a slow leak in your ship. Over time, the water accumulates, and your business – sinks.
Why Every Claim Matters
Address every claim, no matter how small. Remember, insurance claims are not just about compensation but also about risk management.
Mistake 5: Lack of Communication with Your Insurance Provider
Your insurer can’t support you if they’re kept in the dark. Neglecting to inform them about changes in your business can lead to denied claims and inadequate coverage.
Building a Healthy Relationship with Your Insurance Provider
Regularly update your insurer about changes in your business, and always ask questions if you need clarification.
Final Thoughts
Running a business is not always smooth sailing. Still, with a sound understanding of business insurance and by sidestepping these insurance claim missteps, you can weather any storm that comes your way.
Remember that insurance is not just about compensation but also about risk management.
With more than 20 years of experience in the industry, Colne’s team of experts is uniquely positioned to help you avoid these pitfalls and ensure that you are adequately protected against the risks your business might face. We’re not just insurance brokers; we’re your advisors, partners, and advocates in helping you maintain the stability and resilience of your business, even during stormy times.
For guidance on how to steer clear of insurance claim mistakes and ensure your business is robustly safeguarded, contact us at Colne today.
