Some people find insuring their business expensive and time consuming, and most people hope that they will not need to make a claim. However, disaster can strike even the most careful business and it is important to be prepared by purchasing a suitable policy and carefully reading the claims procedure.
If you need to make a claim you should contact your insurance provider as soon as possible. If your claim is necessary due to, for example, damage caused by a criminal act such as vandalism or theft, then you should also contact the police for a report, of which your insurer will also need a copy. It may also be necessary to contact credit card companies or other financial organisations to inform them of the security breach and ensure that personal and business information remains confidential. Your insurer will also expect you to provide them with estimations about the costs of the damage and repairs. If it is necessary to obtain these from a professional or organisation, the claims process may be slowed a little.
Before contacting your insurer, however, it is worth checking your policy guidelines or with your insurance broker to ensure that you have cover for the exact type of claim you need to make. Insurance policies tend to have numerous exclusions in the 'small print', which could make your business liable for the costs of a claim. If you discover that you are covered for your claim by more than one of your insurance policies, it may be worth comparing which one has a lower excess, the part of any claim that you are required to pay yourself, before you contact the insurer. As a result of your claim, you will lose any 'no claims' bonuses to which you had previously been entitled. This may increase your insurance premiums when it comes to renewing your policy, so it is worth considering the extra cost before making a claim.
In most cases, when you contact your insurer they will send you a claims form so you can provide them with exact details of the nature of the claim. The more details you are able to provide, the faster your claim can be processed. If the police are involved, an official investigation may be necessary which may delay the claims process. Every claim will differ to a certain extent, so you are unlikely to be guaranteed a date for the settlement, but you may be able to negotiate a deadline with your insurer if you are in urgent need of the money.
Claims on business insurance can often be complex, particularly if the claim is the result of a large-scale natural disaster or criminal activity. For large claims it may be necessary for loss assessors to take account of the extent of the damage and liaise with your insurance company regarding your entitlement to claim. Your insurance policy may cover the cost of a loss assessor, but it is worth checking this before you sign a policy agreement. Loss assessors, or loss adjusters, are supposed to be independent and give impartial advice; if you have reason to believe that they are acting unfairly, contact your insurer and/or the Financial Ombudsman Service Australia (FOS) or Australian Competition and Consumer Commission (ACCC) infocentre on 1300 302 502, listed in your local telephone directory.
