Timely notice of a loss is a condition of many business insurance policies. The standard commercial property form requires you to notify the insurer promptly of any loss or damage. Likewise, the ISO general liability form requires you to notify the insurer as soon as practicable in the event of an occurrence, offense, claim, or suit. If you fail to report a loss or claim within a reasonable amount of time, your insurer may deny coverage on the basis that you’ve breached the insurance contract. Document every communication you have with your insurer regarding your claim. Keep a list of the names and phone numbers of everyone you speak to as well as the date and time of the call. If you mail paper documents to your insurer, retain copies for your file. If you fail to provide information your insurer needs to process your claim, your actions may give the insurer grounds to deny coverage. Even if your insurer doesn’t deny the claim, your failure to cooperate may delay your claim payment. The standard business auto policy contains similar requirements regarding protection and inspection of damaged property. If a vehicle you have insured under comprehensive or collision coverage is damaged, you must take reasonable steps to protect the covered auto from further damage. Before the vehicle is repaired, you must allow the insurer to inspect the auto and any records you have that substantiate the loss (such as photos of the accident). The standard Business Auto Policy states that you must call the police if a covered auto or any of its equipment has been stolen. Depending on your state, you may be obligated by law to notify the police if an accident has occurred. A police report can benefit you and your insurer. It serves as proof that the accident or loss occurred and can help verify the facts related to your claim. For one thing, injuries that seem minor at the time of the accident may become serious. Likewise, some injuries may not be evident right away. A person whose vehicle you damaged in an auto collision may develop whiplash several hours or days after the accident. Secondly, the ISO general liability form prohibits any insured from voluntarily making a payment or incurring any expense, other than for first aid, without its consent. The ISO business auto policy also bars voluntary payments to third parties. If you voluntarily make a payment to someone and then attempt to recover your payment by filing a claim, your insurer may deny coverage on the grounds that you violated a policy condition. No matter how your damaged property is valued, you should obtain realistic estimates of the cost to repair or replace it. Don’t assume that your insurer’s estimate of these costs is accurate. Repair and replacement costs vary widely from place to place. Construction costs in one area may be significantly higher than those in another. If you disagree with an adjuster’s valuation of a loss, let the insurer know. It may refer you to a consumer complaint department. You can also seek assistance from your insurance agent, your state insurance department, or an attorney.
