When the Unexpected Happens: A Business Owner's Guide to Insurance Claims

As a business owner, you know firsthand that running a business can come with its fair share of surprises – some exciting, and some not so much.  Unexpected events like a burst pipe, theft of equipment, or a collision involving your company vehicle may occur without warning. How would you deal with such situations? While having the right business insurance coverage is a great first step, it's only half of the equation. Understanding how to navigate the claims  process is equally important and can play a key role in being prepared to help your business bounce back after an unexpected event.

When it comes to making a business insurance claim, you might feel uncertain of where to start, but with the right information, the process can feel much more manageable. So, let's break down the process of making a claim to help you feel prepared when it matters most. 

While business insurance coverage and having to file an insurance claim may not be top of mind, being ready for the unexpected and preparing ahead of time can be a game changer.  

Here are a few tips to keep in mind:

1. Gather detailed records: When an unexpected, covered event occurs, your insurance company will likely ask for various records to understand the impact on your business. The required documents can vary based on the type of loss or claim, but here are some examples of documents that your insurance company could request from you: profit and loss statements, tax returns, payroll details, and contracts with vendors and customers. Businesses that operate on cash transactions can save records such as emails and text messages to document purchases and income.
2. Document your assets, property and inventory: Having photos, records and receipts of your tools, equipment and inventory can be helpful to confirm the specifications should the item be stolen, vandalized or damaged. For businesses with a storefront or physical location, photos or videos of the location can help determine the layout and extent of any damage.
3. Secure storage: Maintain digital and physical copies of all important records mentioned above. Consider backing up critical data in the cloud or storing off site - including your insurance policy.
4. Understand your coverage: Regular review of your insurance policy can prevent surprises from exclusions, deductibles and coverage limits. 

It can be stressful when an unexpected event impacts your business, so having the right documents saved and easily accessible could help simplify your claim and get you back to business. Taking some time to plan ahead can save you a lot of stress and headaches later. 

There are many variables to keep in mind when filing a business insurance claim and one of the biggest factors is the type of incident that occurred, and the impact to your business. For example, the details around a claim involving a fire at a restaurant would be handled much differently than a claim for stolen tools at a jobsite, however many of the principals remain the same.

While the specifics may vary by insurance provider, below are a few steps to give you an understanding of what you need to do, and what you can expect throughout the claims process.

1. Assess the damage or incident: First and foremost is the safety of you, your employees, and the public. Ensure the area is free from hazards before approaching any damaged property. Depending on the situation, you may also want to contact the police and file a police report (such as cases of theft or vandalism).
2. Notify your insurance company promptly: Reporting delays may potentially complicate the claims process or even lead to denial of your claim, so it's important to report the incident to your insurance provider as soon as possible.
3. Document everything: Take photos, videos, and record details of the incident. Make a complete list of all impacted items and gather any supporting documents such as receipts, records, purchase orders etc. Save damaged items and discuss with your insurance adjuster before disposing of any items. When in doubt, be as detailed as possible in documenting any damage and providing records to support your claim. The more information you can provide the better.
4. Work with your insurance adjuster: An adjuster will be assigned to your file who will explain the coverage you have in place and guide you through the next steps. The adjuster may visit your business to assess the damage and gather additional information from you. You may be required to complete a proof of loss listing all damaged or lost items including the value or cost of the damage. Ask questions and ensure you understand the process from the start through to the resolution.

The goal with any claim is to minimize the impact to your business and get you back up and running as soon as possible. Understanding the process, having the proper documentation on hand and being prepared for what to expect can help alleviate stress and make the claims process a whole lot smoother.

Do:

• Keep calm and focused
• Document as much as possible. Take lots of photos or videos of the damage and keep records of conversations, emails and any other relevant information. Have records and receipts ready for submission to support your claim.
• Communicate with your insurance advisor throughout the claims process. Ask questions if you are unsure about anything. 
• Always check your policy and consult with your advisor to check what's covered and what's not.

Don't:

• Dispose of damaged items too soon. Your adjuster may need to inspect the items so it's a good idea to reach out to your advisor for guidance before disposing of any items.
• Guess or over-exaggerate details. Being as accurate as possible is important.
• Delay in reporting the incident and ignoring policy deadlines.  

At TD Insurance, we know that you've put a lot into your business. We're here to help protect what you've built and provide support and guidance if the unexpected were to happen.

To report a claim or learn more about what type of insurance coverage is right for your business, connect with a licensed TD Insurance advisor at 1-855-724-2883 who will help guide you through the process.