Business Insurance Claim: How To File and What You Need Explained

Business insurance claims can help you get back on track after your business experiences a loss, whether it's damaged property, a workplace injury or a potential liability lawsuit. Understanding the insurance claims process and what you need can help you expedite receiving reimbursement and reduce your chance of claim denial.

A business insurance claim is the process of requesting reimbursement for a covered loss through your insurance provider.

Read on to learn more about business insurance claims, including what you need to file and how to do so.

On This Page

• 

  What Is a Business Insurance Claim?

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  How the Commercial Insurance Claim Process Works

• 

  Steps To File a Business Insurance Claim

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  Documentation Needed for Business Property Insurance Claims

• 

  Types of Commercial Claims

• 

  What To Do if Your Commercial Claim Is Denied

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  Tips for a Successful Business Insurance Claim

• 

  Business Insurance Claims at a Glance

• 

  When To Hire a Public Adjuster or Attorney

• 

  FAQs

What Is a Business Insurance Claim?

A business insurance claim is a request by a business owner to their insurance carrier for payment of losses covered under their policy.^[1] By filing a business insurance claim, businesses can more easily recover from financial losses such as property damage, liability lawsuits or operational disruptions. Business insurance policies can vary across insurers and coverage types, so understanding how the claims process works and how to file a claim accurately can make the process more efficient.

How the Commercial Insurance Claim Process Works

Commercial insurance claims typically follow an order of events after a loss has occurred, although the exact steps may vary depending on the claim’s complexity and your policy:^[2]

1. The loss is reported
2. The claim is reviewed by your insurer
3. An insurance claims adjuster assesses the validity of the claim
4. Based on the investigation, the insurer evaluates the claim
5. Your insurer will offer a settlement based on the claim evaluation
6. You can accept the claim or reject it and request a claim reassessment if you disagree with the settlement offer

The timeframe for each claim may also vary based on the type and complexity of the claim, with some taking only a few weeks while others may take several months.^[3]

Steps To File a Business Insurance Claim

Below, we’ll cover each of the steps you’ll likely follow when filing a business insurance claim. By understanding each of these steps, you’ll likely be able to speed up the claims process and improve your odds of an ideal settlement.

1. Review Your Policy and Coverage

You should review your policy and coverage limitations before submitting a claim, including whether the cause of your loss is covered or excluded from your policy. You should also review your policy’s deductible to understand how much you’ll need to pay out of pocket. Similarly, you should know your coverage limits, as you may be responsible for covering losses that exceed your policy’s limits unless you have business umbrella insurance or excess liability insurance.

Ensure you identify the cause of your loss so that you file a claim under the right business insurance policy.

For example, damage to your business’s office will likely require filing a commercial property claim, while an injury that occurs on your business’s property likely requires filing a general liability claim.

2. Document the Incident and Gather Evidence

You’ll need to document the loss and gather as much evidence as you can to support the claim, including:

• Photos and videos of the damage
• Written descriptions of the damage and witness statements
• Reports from law enforcement or emergency services, if they were called to the scene
• An inventory of what was lost or damaged, including its estimated value
• Receipts, invoices and financial statements regarding lost or damaged property
• Proof of the date the loss occurred

3. Contact Your Insurance Company

Contacting your insurance company in a timely manner is critical, as many policies have a limit on how long you can take to submit a claim after you experience a loss.^[3] Additionally, details of the loss, such as photographic evidence or witness testimony, may be more difficult to access if you wait too long after the loss. Many insurers offer claim submission 24/7 through their website, mobile app or claims hotline, allowing you to make your claim as soon as possible.

You’ll typically want to provide the following information when contacting your insurance company to make a claim:^[4]

• Your contact information
• Your insurance policy number
• The type of loss that occurred
• The date the loss occurred
• A description of the loss or injury

4. Complete the Claims Reporting Forms

Your insurer will ask you to file forms regarding your business insurance claims, providing information about your loss. Ensure you keep copies of these forms for your own records, as you may need to refer to them later if there is an issue with the claim. Claims reporting forms that aren’t fully completed or contain errors may result in delays in the claims process or claim denial, so double-check all of your information before submitting them.

5. Work With the Insurance Adjuster

Depending on the severity of the claim, you’ll likely need to work with a claims adjuster, who is responsible for investigating the details of the claim, assessing the extent of the damage or injury and suggesting the settlement amount based on their findings. Ensure you cooperate with the claims adjuster and provide any documentation they request regarding the claim – otherwise, you may slow the process and delay your settlement.

6. Receive and Review Your Settlement

After your claim has been investigated and the evidence reviewed, you’ll receive a settlement for the amount your insurance company feels you’ll need to cover the loss, up to your coverage limits and after you’ve paid your deductible. Alternatively, your claim may be denied if your insurer feels the loss wasn’t due to a covered event. However, you typically have the right to negotiate the settlement amount or appeal the claim denial if you disagree.

Documentation Needed for Business Property Insurance Claims

You’ll generally need to provide documentation for any business property insurance claims to prove both what was damaged or stolen and the property’s estimated value. The more substantial documentation you can provide as evidence, the stronger your claim becomes. Some types of documentation and their purpose include:^[5][6]

Types of Commercial Claims

Knowing the different types of commercial claims your loss might fall under is essential when filing a business insurance claim, as policies typically cover different types of events. Below, we’ll briefly cover some of the common types of commercial insurance claims.

General Liability Claims

General liability claims cover you if a third party is injured on business property or suffers harm as a result of the business’s operations. For example, if someone slips and falls in your store or restaurant, general liability coverage can help cover the medical bills.

Business Property Insurance Claims

Business property insurance claims cover damage to the physical structure of a business or its contents, such as inventory, equipment or furnishings. For example, if a kitchen fire damaged cooking equipment or a vandal smashed your business’s windows, business property insurance could help cover the damage.

Business Interruption Claims

Business interruption claims cover you when your business is unable to operate due to a covered event. For example, if your business is forced to shut down due to a natural disaster or other catastrophic event, business interruption insurance can help reimburse you for lost revenue or the cost of a temporary location to operate your business while repairs are underway.

Workers Compensation Claims

Workers compensation claims can cover your employees lost wages, medical expenses and disability assistance if they are sick or injured while working, helping you avoid potential lawsuits. For example, if an employee slipped on a job site and broke their leg, workers compensation would help cover the cost of their recovery.

Commercial Auto Claims

Commercial auto claims can cover you for property damage, lost income or medical bills for someone else if your vehicle gets in an accident while being used for business purposes or if the vehicle is owned by the business. Depending on your insurer, you may also be able to add optional commercial auto coverages such as physical damage protection for your vehicle.

What To Do if Your Commercial Claim Is Denied

Not every commercial insurance claim is accepted. Claim denial may happen if forms were submitted incompletely or with errors, the claims adjuster didn’t find enough evidence to validate the claim, or your insurer doesn’t believe the reason for your claim is covered under your policy. Ensure you read your insurer's denial response carefully to understand why they made their decision.

If you disagree with the decision to deny your claim, there are various options you could take:

• Review your insurance policy to determine whether you should or shouldn’t be covered
• Request additional information on the reason for denial from your insurer if their response isn’t detailed enough
• Gather additional evidence for your claim that may have been missing on the first submission
• File a formal appeal with your insurer to reassess your claim
• Contact your state insurance department or an attorney to help you resolve the dispute with your insurer

Tips for a Successful Business Insurance Claim

Below are a few tips on how to improve your odds of successfully submitting a business insurance claim:^[1]

• Don’t panic after a loss: Ensure you begin documenting any damages or injuries as soon as possible.
• Notify first responders: Contacting first responders, such as law enforcement or paramedics, can help you obtain an incident report that serves as evidence.
• Report your claim as soon as you’re able: Waiting may delay the claims process.
• Review your insurance policy: You need to understand what you’re covered for, what you’ll need to pay out of pocket for your deductible and your coverage limits.
• Cooperate with your claims adjuster: Provide documentation and information they request.

Business Insurance Claims at a Glance

Below is a breakdown of everything you need to know about making a business insurance claim:

• Business insurance claims can help you recover from a covered financial loss.
• When making a business insurance claim, you’ll want to document all evidence of the loss and submit it to your insurer as soon as possible.
• Waiting too long to submit your insurance claim could delay the process or increase the likelihood of denial.
• Commonly submitted business insurance claims include general liability, business property, business interruption, workers compensation and commercial auto.
• If your claim is denied, you’ll generally have the ability to appeal the claim.

When To Hire a Public Adjuster or Attorney

It may be worth hiring a public adjuster or attorney if you find you need to negotiate a better settlement with your insurer after the claim is approved. However, it may also be worth hiring a public adjuster to expedite the claims process, as they may be able to make more accurate assessments of your losses.^[7]

Public adjusters will typically work with you for the entire claims process, as they aren’t paid until after your settlement is received. Using a public adjuster for the entire process can make things smoother and reduce stress when managing the claim.^[7]