Although you'd hope that your small business wouldn't ever need to make an insurance claim, accidents and mishaps are inevitable. Thus, it simply makes sense to understand the factors responsible for commercial insurance claims and protect your business against them.
In this blog, we examine the most typical claims businesses make and offer suggestions for avoiding them.
Common Commercial Insurance Claims
- Theft
Theft is by far the most frequent claim for small businesses. The FBI estimates that 448,617 business burglary offenses are committed annually. Moreover, employee theft costs US businesses $50 billion annually.
Solution: Do your best to prevent theft by regularly updating your company's security system. You can also add a criminal endorsement and an employee dishonesty/theft endorsement to your insurance policy for extended protection.
- Fire
One of the most frequent and expensive types of commercial insurance claims for small businesses is fire. A fire doesn't merely destroy your belongings but can also cause third-party bodily injuries and property damage. Your business operations can possibly come to a sudden halt due to fire.
Solution: Smoke detectors and multi-purpose dry chemical fire extinguishers should be installed on every floor. Business insurance covers fires while general liability insurance pays for third-party injury or property damage, and defamation lawsuits.
- Weather damage
Strong winds and hailstorms can significantly damage your company's property in a short period of time, disrupting operations and necessitating expensive repairs. For instance, trees can be pushed onto buildings by gale-force winds and hail can harm your façade and break glass windows.
Solution: Always plant trees close to your property; remove any overhanging branches, and swiftly remove any dead or dying trees. If a severe storm is expected, secure any outdoor equipment that can be thrown into your building by strong winds and cover any windows.
Business income insurance can make good the revenue lost while repairs are being completed, and commercial property insurance will cover losses from wind and hail damage.
- Client Injury
As a business owner, you must ensure the security of both your staff and clients. Unfortunately, workplace accidents such as slips and falls can still occur despite your proactive measures, and if you're found to be at fault, the cost of medical bills, damages, and other expenses can add up quickly.
Solution: Clean up spills as soon as they occur to avoid slick floors. Tripping risks including loose rugs, floor mats, or uneven flooring should be fixed immediately. If a customer is hurt on your property or at your place of business, general liability insurance can pay for their medical bills. If the customer decides to file a lawsuit, the policy can also pay for the settlement and other legal expenses.
The Claims Process
Call your insurance agent right away to report the loss and then follow their instructions. Keep the relevant documents close at hand to expedite the process. Obtain a comprehensive copy of your policy, and locate any prior business tax filings. Many commercial business registrations include protections against income loss, and your filing may help you locate lost items. Gather any documentation that can help verify the cost of any damaged equipment.
Protect Your Business with Anderson Insurance
The right kind of commercial insurance policy can protect you and your business against several unforeseen events. At Anderson Insurance we can help you find a policy that fits the unique needs of your business. Contact us today to learn more!
