Business Claims Guide

Whether your business claim involves property, liability, workers compensation, auto, or some other type of insurance coverage, your policy describes your obligations in the event that you have a claim.

 Costlow Insurance offers a variety of business insurance tips to help your company run smoothly in any situation. 

Read and review your policy before filing a claim. Call your insurance agent to review this process.

Property Claims

Your policy describes all your obligations in the event of a property claim. Among other things, the Business Owners Policy (BOP) obligates you to:

• Contact your agent and insurance company right away.
• Report any violation of the law to the police immediately.
• Take steps to protect your property from further damage by making temporary repairs; if immediate repairs to equipment are necessary, save the damaged parts in case the claims adjuster is interested in examining them.

• Resume all or part of your operations as quickly as possible.

Business Income Claims

If your policy provides business income coverage, you will need business records to establish the amount of your insurance benefits; they may include:

• Historical sales records.
• Income and expense information shown in recent profit and loss statements or income tax forms.
• A record of extra expenses incurred to resume business operations after a covered loss; expenses could include temporary rental space, temporary equipment rental or moving expenses.

• Receipts/records for damaged inventory.

•  Other business records that may support projected business profits, had a loss not occurred.

Liability Claims

If threatened with a lawsuit, contact your insurer about the possibility of a liability claim; however, events could result in a liability claim but may not: an example is when a third party suffers a fall on your premises, at the time you do not know whether the person will sue.

This is the type of “occurrence” that could lead to a lawsuit and that a BOP requires you to report. Provide specifics of the event and contact information for any witnesses. The BOP also requires that you should not incur any expenses, other than for first aid, for anyone who claims to have been injured.

If there is a lawsuit, you must notify the insurer immediately and cooperate in the investigation and defense of the case.

Workers Compensation Claims

Contact your insurer quickly if an employee has a work-related injury. Immediate action in providing an assessment of the accident and medical care can often help accelerate the employee’s recovery, rehabilitation, and return to work. You are obligated to cooperate in the insurer’s investigation of the claim, providing records and any other information requested.

Auto Claims

Employees who drive vehicles on business, whether their own or the company’s, should be instructed on how to respond in the event of an accident.

After an accident, call 911 and have the police dispatched so that they can make an accident report. Obtain names and contact information for any witnesses. Notify your insurance agent quickly of the accident and cooperate in the insurer’s investigation.

Texas has laws governing the claims process and you have rights and obligations under those laws. Be sure to review this with your agent.

Business Insurance Made Easy

We realize that an insurance policy can often times be confusing, so in order to give you a better understanding about insurance in Texas, we have put together a series of articles called “Insurance Made Easy”. It highlights the different types of insurance and explains them in easy to understand language.

Read more at Texas Business Insurance Made Easy

Disclaimer: Content and illustrations represented and provided here-in are for informational purposes only. This information should not be misconstrued to be considered Insurance or Binder Coverage for Insurance.

Always consult a licensed insurance agent in the state of Texas for specific insurance coverage types and needs analysis as insurance policies in Texas vary.

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