Making a claim as a small business should be a simple process, but sometimes, it might not be paid out in full, or at all. At Towergate Insurance, we’ll work with your insurer in the event of a claim to encourage a quick and fair outcome. In this article, we list nine things you can consider to avoid a rejected claim.

1. Are you underinsured?

If your assets do not have up-to-date valuations, you may be underinsured, which means that your claim is likely to not be paid out in full. You should regularly review the value of your assets to make sure that your policy is accurate. This includes the value of your buildings, contents, tenant improvements or turnover (for BI claims).

2. Have you disclosed all relevant information?

When you take out a policy, you should disclose all relevant information that may influence the underwriter’s decision to provide cover. This could include County Court Judgements (CCJs), adverse directorships, criminal records, and any past insolvencies (please note, this list is not exhaustive). If you do not disclose these, your claim could be denied. Please note you have an ongoing duty of disclosure: do not wait until renewal to tell us if something has changed.

3. Are you working with the right loss assessor?

When you make a claim, your insurance company will typically appoint a loss adjuster to assess the damage and cost of repairs. You can choose to appoint your own independent loss assessor who works solely for you.

4. Do you have sufficient business interruption (BI) cover?

The amount of BI cover you’ll need is dependent on the size and nature of your business. Speak with your insurance broker to discuss a realistic duration of business interruption cover for your specific requirements.

5. Do you have a stake in what you’re insuring?

Your claim may be rejected if you do not have a legitimate stake in the business/asset that you’re insuring. For example, taking out business insurance for a business you don’t have any legal interest in.

6. Have you been 100% truthful?

When taking out insurance, you are bound under the duty of fair representation which is a duty to disclose the whole truth and disclose all material facts. Make sure you are completely honest when taking out your insurance, even if it doesn’t seem relevant. Even the smallest omissions of truth can result in your claim being denied.

7. Have you met the conditions of your policy?

Your policy will include some specific conditions that need to be met. If you fail to do so, your claim could be denied. Take a close look at anything marked a “condition precedent” as this may mean the policy will not engage if you do not meet the requirements.

8. Do you have sufficient evidence? 

Make sure you have the right documentation to back up your claim, such as receipts, photos of the damage and witnesses, where relevant.

9. Did you follow your insurer’s claims process?

Are you aware of the claims process for your policy? It helps to understand this when you take it out, so you know exactly what you need to do in the event of an incident. You need to report the claim promptly, gather all relevant evidence and fill out the claims form both accurately and completely. Policies also often carry a co-operation clause, meaning you must supply all information requested by insurers within a reasonable time frame.

At Towergate Insurance, we can help you get this right from the outset and will be there to support if you need to make a claim. Want to know more? Get in touch with your usual Towergate adviser.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems, we recommend that professional advice be sought.