Claim

A claim is how a business activates the protection it pays for through insurance.

You might file a claim after a customer slips and falls, a fire damages your shop, a cyberattack locks your systems, or an employee gets hurt on the job. Filing a claim triggers the insurance company’s review and, if approved, payment for the covered loss.

Knowing what claims could come your way can prepare you for the process of filing a claim, which can be helpful during stressful times.

The most common commercial insurance claims include:

If a customer slips and falls at your business, you could be facing an expensive claim or lawsuit. General liability insurance can protect you from these risks, covering an injured customer's medical bills and any legal fees if lawsuits or settlement costs arise.

Slip-and-fall accidents are common claims for small businesses with heavy foot traffic, including:

• Restaurants
• Coffee shops and cafes
• Clothing boutiques and other retail stores
• Hair salons and barber shops
• Gyms and spinning studios

Whether it's caused by the flames, smoke, or soot, fire damage is one of the most common—and most expensive—commercial insurance claims for small businesses. A fire can quickly destroy your property, damage someone else's property, and force you to halt operations.

Most fire damage claims are covered by a commercial property insurance policy or a business owner's policy (BOP), including:

• Destroyed equipment and furnishings
• Lost inventory
• Damaged property

If your business is forced to temporarily close due to a fire, business interruption insurance would help keep you afloat while you recover. Typically added as a rider to a BOP, this coverage handles many business expenses like rent, employee wages, and lost income.

Severe weather events are unavoidable and cause serious damage to many small businesses. While most commercial property policies cover damage caused by wind and hailstorms, you may need additional coverage if you're located in an area prone to:

• Hurricanes
• Earthquakes
• Natural disasters, including floods and wildfires

It's important to note that while these policies are highly customizable, your coverage will depend on your policy terms and your claim's cause of loss.

Phishing emails, ransomware infections, data breaches, and other kinds of cyberattack claims are becoming increasingly common for small businesses. These malicious cyber incidents can cause significant financial damage, making cyber insurance a crucial policy for most companies.

This policy covers costs related to:

• Notifying customers of a data breach
• Providing credit monitoring to affected individuals
• Recovering compromised data, including ransom payments for cyber extortion
• Cybersecurity specialist services to restore affected systems
• Supplementing lost income during business interruptions

To understand what types of commercial insurance will cover a claim, it’s important to determine what type of claim you’re filing. Here are some of the most common business insurance policies and the types of claims they’ll cover:

Filing a claim can feel overwhelming—but it doesn't have to. Here's what you can expect if an incident occurs:

• Notify your insurance company right away
• Submit proof, including photos, videos, receipts, and inventory records
• Your claim is reviewed by an insurance adjuster
• A coverage decision is made
• The payout or settlement is issued (when approved)

Keep in mind, timelines can vary depending on your insurance company and the unique circumstances of each claim. Providing ample documentation and cooperating with your insurer can help the claims process go faster.

Commercial insurance claims typically stay on your active record for three to five years, although this can vary by insurance provider.

Your claims history is often reviewed during underwriting and policy renewals so your insurer can understand the frequency and severity of past claims and any payout trends.

Multiple claims can affect your premiums, policy eligibility, and coverage options.

If you're unhappy with your insurer's claim payment or denial, review your options in the claim denial documents included with your policy or the insurer's website.

Some initial steps you can take include:

• Request a written explanation of the denial.
• Provide additional documentation or evidence.
• Ask your insurance agent or broker to help you understand your options.
• File an appeal with the insurer.
• Contact your state's insurance department if the dispute remains unresolved.

For many types of insurance, state insurance departments assist with claim disputes. Check your state's insurance department website for information on appealing an insurance company's claim decision.

Not every claim is worth filing, especially if the cost is close to your deductible or if frequent claims could increase your premiums. If you're unsure, your agent or broker can help you decide whether reporting the incident or paying out of pocket is the better move.

Insureon can help you secure affordable insurance coverage from top-rated U.S. insurance carriers with one easy online application. And our licensed insurance agents are here to help you navigate any questions or decisions throughout your insurance-buying process.

As your broker of record, Insureon will help you submit claims, provide risk management guidance, and save time on administrative tasks.

Once you find the right policies for your small business, you can begin coverage in less than 24 hours and get a certificate of insurance (COI) for your small business.