NYC Insurance Blog

Top 5 Common Commercial Insurance Claims and How to Handle Them.

Every entrepreneur dreams of running a successful business for a long time. Whether you are acting to become your own boss or looking for an alternative source of income, small businesses face many challenges while growing.

About 40% of small businesses file claims against their insurance policies at one point or another. It is only wise to keep your business protected from unforeseen accidents with these numbers. 

What is a Commercial Insurance Claim?

This is a formal request you send to your insurance agents for compensation. Usually, the insurance claim notifies the insurance company that you have suffered some losses included in your insurance cover. Call us today for a quote!

The top 5 Commercial Insurance Claims Filed by Small Businesses Include:

Top 5 Commercial Insurance Claims

Running your business can be stressful. However, it helps if you understand how to deal with insurance claims because you may have to file a claim at some point. 

Under the commercial insurance umbrella, the following are the most common filed claims by small businesses:

1. Theft and burglary

Burglary and theft rank first among the most common commercial insurance claims filed by small business owners. These claims are most common for construction, manufacturing, and retail businesses. 

It could be a disgruntled employee, an unhappy customer, or a petty thief. Burglary and theft claims account for nearly 20% of all commercial insurance claims. Theft insurance claims require proof of non-violent entry into the premises, while burglary involves forceful and violent entry. 

2. Weather damage

Weather damage comes in second, with most claims filed for water and freezing damage or wind and hail damage. These account for nearly 15% of all commercial insurance claims. Water-related damages are very common. It could be burst pipes due to freezing winters or storm floods in the coastal and low-lying regions. 

The weather damage insurance claim you file could help you repair any structural damage, remove mold or replace the wet carpets in your small business premises. 

Wind and hail damage results from heavy trees and branches falling. Hails can also damage your windows and roofs. On the other hand, a tornado can wipe out your business offices, leaving you stranded. 

3. Fire

Commercial insurance against fire is one of the most expensive claims in business. The fire insurance claims account for almost 10% of all insurance claims, placing them 3rd on this list. And even with these numbers, most business owners tend to ignore it until it is too late. 

Manufacturing industries and restaurants are the most commonly affected businesses. The fire could damage equipment and supplies, and the insurance claim will help you fix or rebuild your structures. 

Remember, it takes a long time to restore your business from fire damage. The fire department has to find the cause of the fire, and you must wait for the conclusion for your insurance company to process your claim. And during these times, you will be losing your income.

4. Customer slip and fall

Customer injury could result from slips and falls within your business premises. When a customer falls at your offices because of slippery floors, and there are no warning signs, you will be liable for the medical expense, lost wages, and legal fees, should they take the matter to court. 

These claims are common in restaurants and retail stores. You have to file a general liability insurance claim for your injured customer to receive compensation. 

5. Customer injury

These claims, which account for nearly 5% of small business insurance claims, result from accidents that cause personal injuries to the customer. They are common across many industries, including construction, retail businesses, and landscaping. 

So, when your commercial vehicle runs into a vendor's cart and causes property damage or a piece of metal falls on a passerby, you will have to file a general liability insurance claim to cover the cost of repairs, legal fees, and medical expenses, if any. 

How to File for Insurance Claims

If you need your insurance company to step up and help you cover damages, you start by contacting your insurance agent to notify them of your situation. Allow us to be your guide, by letting us be your insurance broker!

While bringing them up to speed, be sure to include every detail. Tell them what was damaged, or every complaint filed by a customer. You may have to call to make a claim, but others allow you to file your case online. 

While making your claim, the insurance will investigate, while your insurance broker goes over your policy to ensure they cover the claim. The insurance company also gives recommendations for contractors who can help you make repairs. 

When the results of the investigations deem your insurance claim viable, your insurance agent will call with an amount you can expect in payouts. 

How to Handle Rejected Claims

Sometimes, the insurance company may reject your claims. It could be because the insurance company suspects fraud, or your policy does not cover the event. Sometimes, you may lose your claim when you do not file the claim quickly enough. 

When this happens, make sure:

• You write a response letter to your insurance company expressing your grievances
• Keep accurate records of the events before and after the incident
• Keep following up with the insurance company for clear responses
• And if you need help, you can always reach out to the state insurance regulator
• Don't rush to court, but instead, work out a deal with the insurance company

Going into a claim alone, or without professional help can be confusing & frustrating. Having an insurance broker on your side makes the process, less stressful - Give us a call Today!

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