The 3 Most Common Business Claim Mistakes
As our communities become increasingly litigious, business owners find themselves pulled away from their core focus and working on claims that they were not prepared for. Fortunately, there are precautions businesses can take to eliminate litigation in the case an event resulting in a claim should occur.
Here are the 3 most common business claim mistakes:
Not Purchasing Employment Practices Insurance
The most common claim is made by employees and/or customers/tenants. In fact, according to the Independent Insurance Agents of America, you are more likely to be sued by an employee than you are to have a fire at your facility. Just over 40% of claims filed are against employers with less than 100 employees and the average cost including legal fees and awards averages $75,000. Purchasing this coverage not only protects you in case of a claim, but most insurance carriers will also assist employers with becoming compliant with employment policies and procedures.
Not Reporting a Claim in a Timely Manner
Another area where business owners find themselves in a place they never wanted to be is when they have purchased coverage, but do not report or submit a claim in a timely manner. Many times companies do not realize what coverage they have and try to go it alone or think “it will never amount to anything.” Remember, your insurance provides the costs for legal defense for claims even should you be found to have done nothing wrong, so the best thing to do is report it right away.
Improperly Insuring your Property and Equipment
Finally, another common area is not insuring property and equipment to the correct insurable value and/or not understanding the coinsurance requirements in case of a partial loss. At the time of a major loss, you will not have the time to compare the prices and features that you had when you originally purchased these items on a case-by-case basis. Also, buying used or refurbished equipment and then insuring for replacement cost can lead to severe underinsurance and/or on part of the repair costs being covered.
At Snellings Walters, we’re dedicated to protecting your business should a claim arise. We know every business is unique, and we will work with you to create a policy with coverages that meet your individual needs. You can get in touch with us here, or call us at 770-637-1726.