Making an Insurance Claim

5. Quick and Full Settlement

5.1 When choosing an insurer, do not just compare premiums. Compare the scope of cover provided, as well as additional services such as a 24-hour helpline.

5.2 Keep detailed documentation of all information needed to support your claim.

• Keeping accurate records of what you own makes it easier to assess the scale of your losses.
• Your claim may be rejected if you have not kept records of fire and security inspections, maintenance logs, or health and safety procedures. Ideally, keep duplicate records off-site.

5.3 Do not cause delays in settling the claim.

• If you are asked for three estimates, do not just provide one. Your insurer will only ask you for the other two later on.
• Reply to all correspondence quickly.
• If you are unsure of what information to provide, ask your insurer or broker for advice. Do not wait for the insurance company to contact you.

5.4 Get expert help to argue your case. Support your claim with evidence.

• Insurance brokers and advisers may chase up claims free of charge. And they have experience of dealing with insurance companies on a daily basis.
• For larger or more complex claims, consider using your own expert loss assessor to manage the claim and any negotiation on your behalf. This will usually cost you 10 per cent of the claim payment, but this should be offset by the increased speed and value of the settlement. It will also leave you free to concentrate on rebuilding your business.
• Consider appointing a solicitor to assist with the preparation of any witness statements.
• If your insurer appoints a forensic scientist to determine the cause and site of a fire, consider appointing one yourself.

5.5 Good contingency plans make the settlement process less urgent (see 1.5). This can strengthen your negotiating position.

• For example, keep back-ups of all computer records. If your equipment fails or your computers are stolen, you can hire computers and keep your business running.

5.6 Ask for interim payments if the claim is taking a long time to settle, or the loss is putting a financial strain on your business.

• Most insurers will accept interim claims and agree to make interim payments, however they are not offered automatically.