No business owner ever plans to have an accident or suffer a loss, but when it does happen, business insurance can help you get through the claims filing process.

This article will explain the basics of making a claim and what you can expect from the insurance company. Read on for more information.

Preliminary Steps

If your business has been the victim of a crime, the first step is to file a police report. This will document the incident and will be used by your insurance company to process your claim.

If you have suffered property damage, such as a fire or flood, you may still need to file a report with the local authorities as well. This will help to document the extent of the damage and will be used by your insurance company when they are processing your claim. It would also help to take pictures of the damage since they can come in handy when supporting your claim.

Once you have filed a police report and documented the damage, contact your business insurance company. You will need to have your policy number in hand as well as any other documentation that will be required. The insurance company will then assign an adjuster to your case who will contact you to begin the claims process.

What Does an Adjuster Do?

The adjuster will likely want to meet with you in person to assess the damage and determine the cause. They will also ask you for a list of damaged or lost items. Be sure to have this information ready when the adjuster arrives.

After the adjuster has assessed the damage, they will work with you to determine the next steps. If your business can continue operating, they might help you put together a plan to do so. If your business cannot operate, they will work with you to determine the best course of action. Oftentimes, this will involve business interruption insurance, which can help cover the cost of lost income.

The adjuster will also determine the value of your lost or damaged property. They will likely use one of two methods. The first is to find similar items currently for sale and use those prices to determine the value of your lost or damaged property.

The second is to use the replacement cost method. With this method, they will find out how much it would cost to replace your lost or damaged property. This amount will be used to calculate the amount of money you will receive from your insurance company.

What Happens After You File a Claim?

The insurance company will then issue a check to you for the amount of the claim. Keep in mind that the insurance company will only pay for damages covered by your policy. So review your policy carefully to understand what is and isn't covered.

Once you have received the insurance payout, you can begin the process of repairing or replacing the damaged items. If there is a business interruption, you can use the money to help cover the cost of lost income. 

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