![Giving assessors as much information as you can will help to speed up an insurance claim.](/web/20150824205556im_/http://www.smh.com.au/content/dam/images/2/0/n/5/d/image.related.articleLeadwide.620x349.2omff.png/1373236130000.jpg)
Giving assessors as much information as you can will help to speed up an insurance claim. Photo: Jessica Shapiro
Every business wants an insurance claim to be processed quickly to help restore normality, and there are a few things you can do to make sure the process runs as smoothly as possible.
Head of claims at insurance brokers OAMPS, Adam Squire, says careful preparation can be the best way to simplify processing in event of damage or disaster.
"The old adage 'be prepared' will make for a smoother process … Your [insurance] plan should be up to date, tested, easily accessible and ready to go," Squire says.
Keeping your insurance policy current as your business continues to grow is a crucial step.
"Talk to your broker about anything that has changed within your business so they can ensure that you have adequate and appropriate coverage and also that you understand what is and what isn't covered under your insurance policies," Squire says.
Once damage occurs to your business – in whatever form – the first thing to do is make sure your business property is safe and secure, and that you're mindful of your staff under the new circumstances your business is facing.
"Gauge your exposure – what has been damaged or affected? Then contact your insurance broker," he says.
After this initial assessment, it is time to get the claims process rolling, and the more detail you can provide the faster and easier the process will be.
"You should try to provide as much information as possible – photos, key contacts, as soon as possible. If you have invoices for recent fixes or work completed, whatever has happened, we need to know so we can get the claims process moving quickly."
Every claim is unique and therefore the steps in handling it will vary. For example, if there is a fire, there could be multiple types of claims, such as for replacing stock, repairing damage to fittings and fixtures in a shop or office, or a separate claim for business interruption, Squire says.
"For each one, we'd be looking at what is the loss and what evidence will we be able to get to substantiate the value of the loss – using receipts and photos."
Once the insurer receives all the documentation about the damage and claim, the next step usually involves the insurer appointing a loss adjustor who estimates the value of the loss, Squire says.
"Then the insurer lets us know if there is a settlement offer."
In most cases, the claims are settled with a satisfactory payment.
"The majority of claims are paid and settled and a cheque sent or money is transferred to our client and then the claim is closed," Squire says.
However, in cases where business owners are not satisfied with the insurer's assessment, it is possible to gather further evidence to support a higher claim, or in more complex cases, meetings can be arranged between the insured business and the loss adjustor.
Where a business is still is not happy with the outcome, or a claim is denied by the insurer, there are internal escalation procedures that are followed within the insurer's organisation. The financial ombudsman is also available, though this is viewed as a last resort once all other negotiations have failed, Squire says.
The amount of time it takes for a claim to be processed is the million-dollar question for any business owner.
"Every client wants to know how long it takes before they have an outcome or payment for their claim. In some cases, with a more simple or straightforward claim, it can be turned around quite quickly. We had a glass claim recently that I know took less than 24 hours," he says.
However, more complex claims can take significantly longer, especially if parties need to negotiate.
The co-operation of the business owner can help speed the process along. Simple things such as making sure you're available to meet with the assessors and providing all the information upfront, can streamline the process, Squire says.
"Good record-keeping also prevents things from being held up – for example, if it's a business interruption claim, we'll need to have your accounting records on hand to substantiate what will be covered."
And when it comes to making an insurance claim, there are some things you should never do.
"The most important thing to avoid doing when making a claim is to misrepresent the evidence or facts involved with the claim. Always try to submit the most accurate and detailed information," Squire says.