When businesses suffer a loss, it can be incredibly stressful for both the owners and those staff working within. Most people start thinking about insurance shortly afterwards to help get things back to normal. You have paid your insurance premiums with the expectation that it will be there for you when you need it. Sadly, it doesn't always work out this way.
There are a couple of phrases that you never want to hear from your insurance company when you a making a claim: "Claim Declined" or "No Cover". Unfortunately we have seen this too many times.
In this article, the Insurely team look at 5 of the most common reasons why business claims are declined and why it’s so important to work with an experienced broker at all times.
The Insurely team would rather you didn't have a claim in the first place, however despite your best efforts, accidents can happen.
1. Gaps in Your Cover - The Cover Never Existed In The First Place
Often when we review a client’s insurance programme for the first time, we identify risks that are simply uninsured. Most clients will only realise this when they need to make a claim.
At Insurely, we tailor the cover to the needs of our clients and provide solid advice. Sometimes clients choose to not insure key covers to save money or take a “she’ll be right approach”. We always provide advice around what’s best to insure and then it’s our clients’
decision about what to purchase.
Remedy – work with an experienced broking team, don’t only look at price alone.
2. Do You Have A Winning Team In Your Corner?
Claims can be complex, so it’s important to have an experienced team behind you. You have better things to do than to worry about how your claims are progressing. Your broker should be your advocate and proactively manage your claim, so you get the best results.
Communication is key.
Good brokers have the right knowledge and experience to get the claims result you need.
Is that smooth sales guy who sold you the policies the right guy to fight for your claim?
3. If In Doubt, ‘Disclose’
Insurance is a based on the principial of good faith. In other words, when the insurer asks you to complete a claim form, your responses need to be honest and comprehensive. Sometimes when insurers discover things haven’t been disclosed accurately, it could mean that your claim is declined and your policy is voided.
An experienced broking team can guide you, making sure you disclose everything that’s required, to help get the right result.
4. Exclusions
Every insurance policy excludes plenty of risks and it’s tough to understand them all.
These are generally areas of risk that sit outside what the policy is intended to insure.
These can range from basic maintenance issues, right through to intentional or illegal
acts that the insurer is not willing to cover.
A professional broker will outline the key exclusions and what they mean for your business. They should explain what you are insured for, and what is excluded, so you fully understand what the policy covers.
5. Insurers Hate Surprises, Especially at Claim time.
In life there are good surprises - perhaps an unexpected birthday party or a gift. Insurers seldom want surprises at claim time. This could include assets that haven't been previously disclosed or a business activity that wasn't previously declared.
Some pointers:
- Keep your sums insured and business descriptions and details up to date
- Underinsurance is a major issue in the industry. So, don’t just roll over values or details year after year without review. Is your business in exactly the same position as three years ago? No? Neither should your insurance remain static
If you add some assets, add/remove some services, start selling widgets when you previously sold wontons – let your broker know.
We review our clients’ sums insured periodically and keep their details updated. For example – we make sure that your business description under your liability policies is up to date and accurately reflects what is happening at your business every year.
This makes sure everyone is on the same page when it comes to insurance – the Insurer, the broker and you.
Summary - You have enough on your plate running a business.
Let our team of experienced brokers at Insurely take care of the boring insurance stuff for you. We proactively guide our clients throughout the year to put you in the best possible position at claim time. And getting claims paid is what we are all about at Insurely.
Book a no obligation call with us today at a time that suits you or send us a note below: