How to File Your Business Property Insurance Claim:

After you have purchased your business property insurance coverage, it is very important to understand the procedure of filing a claim should an incident occur. Whether your business was hit with a disaster, or your equipment has failed, it can be a very stressful time. You may not be able to remember all of the necessary steps to file your claim. By taking the time now to familiarize yourself with this procedure, you will be ready to file your claim immediately.

1. Get ready ahead of time. You should always make backups of important papers, data and other files ahead of time. This data should then be saved in at least two separate locations, such as in a fire-proof file cabinet and a safe deposit box with your bank. You will also need to have an idea of how much this data is worth and what it contains. Try to create an easy reference list to make the process of determining value much easier.

2. Diminish your loss as much as possible. Your business property insurance may require specific action on your part to diminish the loss as much as possible. For example, if your business is flooding and you have not taken steps to save as much equipment or data as possible, you may have difficulty with your claim. This may also include having a temporary facility ready to go in the event that your main location of business is destroyed.

3. Begin estimating your loss. Your easy reference sheet mentioned above will now come in handy as you start to estimate your losses. This sheet should include the value of your equipment, the structure itself, your files and your regular income. This will be used by the insurance company to determine the actual amount of loss that your business has incurred.

4. Get in touch with your insurance agent. Once you have completed the above steps, you will be ready to contact your insurance agent. Make sure that you have all of the information you have collected at hand to make the process smoother. In some cases, your insurance company may require that you report directly to them, so it is important to know what protocol you will need to follow ahead of time.

5. Prepare to meet with the adjuster. An insurance company will hire an adjuster who will visit your location to determine the amount of damage and loss. You will need to be prepared for this visit with your easy reference sheet, property and document information, as well as anything else that will assist them in performing their duties. It is also important to keep the lines of communication with the adjuster open by promptly filling any requests they may have for additional information.

6. Hire your own adjuster. If you are not satisfied with the adjuster's report, you may need to hire an independent adjuster to prove your losses. Since this person will be working for you and not your insurance company, you may get a better estimate of your true losses. Make sure that you hire an adjuster that is used to working with your specific type of business. This will help everyone come to the right answer in less time and the results will be less easy to contest.

Now that you know how to file your claim, you will be able to start preparing now. Even if your business never needs to file a business property insurance claim, the above steps can be very useful in protecting your business interests and keeping you informed on t status of your business.

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