Read about reporting a property loss under your business and commercial insurance policy.
Learn how R E P O R T may help you stay on top of a business and commercial property loss.
Unknown covers a lot of ground. Generally speaking, insurable property losses involve what is unknown, until it becomes a sudden and accidental known.* Business and commercial entities buy insurance (subject to policy terms and conditions) to protect against loss from the unknown. More often than not, a determination of whether or not a property loss is covered is straightforward. One lesser known subject amongst insureds is the insured’s duty to give proper notice of loss to the insurance company. Failure to do so can result in a coverage denial.
In order for your insurance company to respond to your business’ loss, it must be properly notified. A good rule of thumb is to call your independent insurance agent promptly and explain what has happened as soon as you are aware. If you receive a phone call at 3:00 AM from the fire department that your commercial property is engulfed in flames, contact your independent insurance agent as soon as practicable. Our procedure at Richey-Barrett Insurance is to use a pager outside of office hours. When we receive an emergency message from an insured, we strive to quickly return the call. We’ve seen a full spectrum of property losses and do our best to help you avoid panic, as well as advise you of immediate steps to take.
Some things are need to know, but difficult to remember. The following R E P O R T checklist is intended to be a helpful reminder for insureds when they experience a property loss:
- R eport the loss when known. Contact your independent insurance agent ASAP, explain what has occurred, and he/she should be very helpful in guiding you. The insured is required to promptly notify police, if a law may have been broken.
– E xpect to receive a response from the insurance company adjuster within 24 hours. If you do not, advise your independent insurance agent.
– P ay attention to details. Record the date you first notice the loss and document it with photos. Continue photographing restoration/replacement progress and include time and date on all photos.
– O rganize a separate file documenting the loss. Keep all communications received from your insurance company. Follow-up oral conversations with the insurance company adjuster or employees with a written summary, if appropriate.
– R eact with reason. Take all reasonable measures to secure the property from further damage until it can be properly repaired or replaced. Cooperate fully with your insurance company.
– T ake care to retain the damaged property as is (except for taking reasonable measures to secure from further damage) until it is inspected by the insurance company adjuster. Unless it is a danger, do not dispose of any damaged property.
Bear in mind that your business and commercial insurance policy is a legal contract between the insured (i.e. ABC Business, Inc.) and the insurance company. All insureds should familiarize themselves with their insurance policy(ies), including the section describing the insured’s duties in the event of loss or damage. Failure to properly notify your insurance company can impede its ability to evaluate the loss and obtain evidence, which may result in refusal to pay.
*A future blog will focus on claim reporting for business and commercial liability.
Your Trusted Choice Independent Insurance Agent at Richey-Barrett Insurance is happy to help our clients understand the usual procedures to expect during and following the reporting of a property loss. We do more than sell insurance … we provide excellent customer service.
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