Claims happen. That is why businesses carry insurance. As much as we emphasize reducing risk to avoid claims altogether, they are a part of operating a business. However, once a claim is filed, the business still influences how it is settled. Active involvement by the business in processing insurance claims is in the best interests of everyone and should remain a high priority.
Making a Difference
Claims are settled faster, more thoroughly, and based upon more complete information when the business is actively involved in the settlement process. Additionally, claim history is a major factor in determining future insurance costs since insurance companies use it to project future payouts. Therefore, businesses should protect their interests by being involved throughout the process.
Guard your business by reducing the impact claims have upon future insurance pricing. Managing the claims process aids in this goal. For example, actively managing workers compensation claims through a return to work program can reduce workers compensation claim impact by 70%. The same principal holds true for other types of business insurance: active claims management reduces impact on future insurance costs.
The Claim Process
Once a claim is reported to an insurance company, they assign a claims adjuster. This is usually a quick process and may only take a few hours but depending upon the type of claim may take a couple days. The claims adjuster is responsible for overseeing and settling the claim on behalf of the insurance company. They gather information, estimate repair costs, read the insurance policy, check coverages, and ultimately determine how the claim will be settled based upon that specific insurance policy.
How to Manage Business Insurance Claims
The leading reason for dissatisfaction during a claim settlement is not lack of payment, but lack of communication. And since the business has much of the critical information needed to settle a claim properly, it behooves them to overcommunicate with all parties involved. Here are several claim management best practices:
- Assign an employee to actively manage claims from start to finish and require frequent updates.
- Once a claim is filed, reach out to the claims adjuster, provide them your contact information, and ask if they have any initial questions. This way a rapport is established, and the adjuster will know who to contact. This will initiate communication and identify the business as one with an active claims management program.
- Respond quickly to all information requests by the adjuster.
- Be clear in communications. Email works well but is easily misunderstood. Ensure communications are straightforward and not open to interpretation.
- Provide all pertinent claim detail, including photos if appropriate.
- If the claims adjuster will be making a site visit, meet with them. Take advantage of every chance for face-to-face communication.
- With each communication with the adjustor, ask regarding next steps and when they should be accomplished.
- Follow up with the adjustor on those future dates for progress reports.
- Involve the claims adjustor and your insurance agent in coverage questions. Policies are written to be clear, but your insurance agent understands your business as well as the insurance policies. They cannot create coverage that is not in the policy or was not purchased in the first place, but they can advocate on your behalf.
Dedicated Claims Advocates – The Bankers Insurance Difference
Bankers Insurance staffs claim advocates to manage the claim process and represent our client’s interests. They work for our clients, not the insurance company, and support them through claim challenges, including fighting for coverage should a denial be improperly issued. By actively managing insurance claims and ensuring communication remains open, our clients receive approximately $200,000,000 in claim payments each year.
Expert Tip
Once a claim is filed, it is settled based upon coverage written in the insurance policy. Unless coverage is provided by the insurance policy in writing, it will not be afforded. Therefore, know your coverage beforehand. Read your insurance policy and contact your insurance agent with questions.
Questions regarding business insurance? Contact your Bankers Insurance agent. Not a client of ours? Let us earn your business! Each client is assigned a personal agent in our office, given their email address, and provided a phone number that rings right on their desk.
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