Filing an Insurance Claim

The moment the rubber meets the road with Insurance is claim time. You can try to avoid it, but the odds are that you will experience a claim during your time as an Insurance policyholder. When that time comes, it is important to know how to contact the Insurance company to provide notice that a claim has occurred or been made.

First, contact your agent. When you purchase or renew your Insurance policy, instructions on how to report a claim will be included with the policy. Oftentimes, a claim can be reported to your local agent and prepared by the agent to be submitted to the company via website, phone or email. If your local agent is unavailable, most companies can take claim reports 24/7 via a toll-free phone number or the carrier’s website. In this scenario, it is important to discern the difference between your agent and your company. The company can easily be identified by looking at your policy documents. The company will be the entity that will address your claim.  The agent will be able to answer questions involving the claims process and help to facilitate contact if there are difficulties connecting with the adjuster.

I hesitate to suggest paying out of pocket for a claim, especially if there is property damage or injuries sustained by a 3rd party.  If the claim involves property damage and the damage is less than your deductible, paying out of pocket is inevitable. If the incident involves injuries or property damage of a high value or of other parties, it’s always best to have a conversation with your agent and report the claim. It is important that your insurance company get involved sooner rather than later so that statements, contact information and logistics can be handled by the adjuster. Oftentimes, damages or injuries may not be fully realized the day of the incident. It may take a few more days or weeks to realize costs of repairs, significance of injuries, and resulting loss of business and incurred extra expenses.

Does reporting a claim mean that my premium is going to increase?  Not necessarily. Certain types of claims may not affect the rating of your policy. Other types of claims might be linked to a specific discount percentage on your policy, and you can quickly discern the premium dollar amount associated with said discount. Again, best to have a conversation with your agent.

If you are feeling like you’d rather not report small claims, that is your prerogative to retain more of your risk. Take a moment to pause and consider how significant the damage to your property or business would need to be before you would feel moved to submit to the Insurance company for coverage. With that threshold in mind, have a conversation with your agent about increasing your deductibles and what your expectation would be during a loss. There is no right or wrong way to design your insurance policy; there is only the unique way to fit your needs.

You may read the published article at Carroll Business Quarterly.