Signing an insurance contract is like making a bet: you and the insurance are both betting that nothing ever happens to your business.
You pay your premium with the knowledge that it will rise should something happen and the insurance collects that premium and promises to fulfill its end of the bargain in an emergency, though they hope to never have to.
The issues arise when you don’t start understanding the fundamental principles of insurance contracts with that in mind. Never forget that insurance companies are businesses with a bottom-line to meet. They want to spend as little as possible while making as much money as they can, just like you do.
Steps to Get Your Payout
Getting your insurance payout tends to never be a simple or straightforward process, but there are steps you can do to help your case. Below are some of the things you can do to make sure you get the money you need to get back on your feet.
Keep Inventory
It may sound kind of obvious that keeping inventory would increase your chances of an insurance payout. If you don’t know what’s broken you can’t fix it, after all. However, there are multiple inventories you’ll need to keep.
In good times, you’ll need to keep track of everything you need to make your business run. This includes not only goods and documents but also equipment, space, jobs and employees. Each of these items is vital to your daily operations and yet you probably only consider taking inventory of your goods and keeping track of important documents.
Equipment is probably the easiest to inventory due to it being similar to goods in that they are items you store at your location. Space is a bit more difficult. It refers to the locations where items are stored and people work. For example, your office is just as important a space as your warehouse.
Jobs and employees refer to what position you need filled and by who to get your vital work done. You may need an accountant to pay attention to the finances or a forklift operator to move boxes to the appropriate shelf. Keep track of all of these things as best you can, whether that be through writing or pictures.
After a disaster occurs, you need to keep an inventory of the damages. Catalog what objects were damaged or destroyed, see what can and can’t be repaired and so on. See what operations were interrupted or halted altogether and describe what impact that will have on your business. Take as many pictures as you can; they’re great evidence.
Review the Policy
When the disaster is over, you’ll need to review your policy. It has likely been a while since you last looked at it, and it may tell you how to file a claim and what information you’ll need to give the insurance company.
At the very least, it should describe what is and isn’t covered which will tell you what your next steps need to be. If you aren’t covered then you’ll need to find some way to recover on your own or review another insurance contract you’ve signed. If the distance you’ve experienced is covered then you need to figure out how to file a claim.
Contact the Insurance Company
This could mean you go to the insurance company’s website and file a claim that way, or you could call them and get help that way. You will end up filing a claim either way, so keep that in mind.
When the insurance has been contacted, start taking steps to protect what’s left. Failing to prevent further damage is often used as a reason to decrease or waive the payout altogether. For example, if a leak appears in the ceiling, place something to catch the water.
Not doing this may allow the insurance to avoid paying you because you let the damage continue once you knew about it. Inventory any costs you accrue in this process, even if you have to make emergency full repairs. These costs may be covered as part of your policy and may stress to an adjuster how much the insurance owes you.
Don’t be shocked to learn that an adjuster is on their way. The insurance company is pretty much guaranteed to send one if the damage is severe but they may also choose to do so at any time.
They will examine the damage and give their opinion on how much you’re owed, if anything at all. Yes, they will sometimes be there exclusively to try and get the insurance out of paying for repairs where possible. Don’t assume the worst, but be prepared for it.
Hire a Lawyer
Insurance claims take time to process and it can be difficult to get the money you’re owed sometimes. While keeping inventory, reviewing the policy and contacting the insurance as soon as possible will all aid this process, it will always be time-consuming.
Also, the insurance company will look for any reason to avoid paying you. It makes sense, as they lose money by paying you even after they raise the premium. The best thing to do, then, is to hire a lawyer as soon as you can.
Your lawyer will do many of the same things that both you and your insurance company will: they’ll review the policy, examine the damage and more. However, a lawyer will be able to use their knowledge of the law and the terms in the policy to not only quicken the insurance’s reprise time but also make sure you get every cent you’re owed.
They may also have new ideas that will assist you. For example, your lawyer may suggest you hire a contractor to appraise the damage and give an estimate on what it will cost to repair or replace what has been broken and lost. They may hire disaster clean up crews for similar reasons. Make sure to carefully listen to and follow your lawyer’s advice; it may be more valuable than you expect.
