Insurance does not just prepare you for inevitable and often uncontrollable losses that happen in life, it protects you against it. As a business owner, what to insure is very diverse depending on the kind of business you are into. Certainly, whatever you decide to insure is worth very much to you.
Losses suffered in insured aspects of your business are covered by the insurance company to the degree agreed when getting the insurance. According to the legal experts at https://herbertlux.com/, some businesses suffer losses and have to bear it all by themselves despite having insurance because of certain violations to their insurance agreements.
Some of these mistakes are quite easy to make and anybody can make them if care is not taken. Insurance violations can result in delayed payments or outright lack of payment.
Common insurance violations every business owner should prevent are explained below.
Delayed Notification
A common mistake made by business owners is failure to notify insurers as quickly as possible about accidents or losses covered by their insurance policies. If you have an insurance policy, one of the very first calls you make subsequent to an accident or a loss is to your insurer. In the heat of the situation, it is very possible to be overwhelmed and out of sorts, hence forgetting what to do. Engage whatever thing or way that will help you remember. An immediate call to your insurer is important for two reasons:
- Claims adjustment is easier and evidence is fresh.
- It is required by many insurance policies
Poor Documentation
This is usually unexpected for business owners because they are expected to be good record keepers yet it is one of the most common insurance violations reported every now and then. As a business owner with the insurance policy, keep a separate file for the policy. All discussion with your insurer concerning your policy must be properly documented including time and date. An important thing to note here is that no conversation is inconsequential, document it all. Have a copy of every mail you sent to your insurer.
After phone conversations with a representative of the insurance company, send an email or letter containing the details of the conversation. In case of loss or accident, take pictures where you can. Guard against poor documentation or else you might end up losing your claim or at best your claim will be delayed.
Lack of Cooperation with Insurer
How do you expect your insurer to deliver if you are not on the same page regarding your policy? To get your claim processed effectively and quickly, your insurer needs all the cooperation he can get. Make sure all instructions given you regarding claims are followed to the letter. Be conversant with what is required of you and do them.
Disposing Damaged Properties
One of the key sureties to get claim is evidence. Any property affected in an accident should be left as it is until an adjuster comes in for inspection. If you can’t bear the sight of the damage, leave instead of throwing things away. You are in fact expected to prevent further damage where you can.
Failure to Involve the Police
Some insurance policies are violated on the grounds of not contacting the police in the event of the loss. For example, anyone involved in an accident and is fit enough is expected to inform the police. Failure to do this can result in claim denial.
Personal Payment of Third-Party Claims
In the event of an accident, you can be tempted or pressured to use your money to take care of the third party and their properties. A good example for a business owner is taking money out of your pocket to care for injury sustained by an employee in the workplace. This is a bad idea because:
- Many insurance policies frown at taking on such expenses, especially without the consent of your insurer
- Secondly, injuries or damages that seem minor initially can escalate after a few hours.
All of the violations listed above are common among business owners and are potent enough to deny you access to claims. Avoid these mistakes. Other moves necessary for business owners in getting claims are:
- Follow your insurer up. Don’t just cross your legs expecting your claim to come in. If you do not hear from the adjuster after a few weeks, make contact.
- Read your policy very well. Understand the pros and cons.
- Don’t take your insurer’s calculation as ultimate, check and ask questions to ensure proper valuation.
- Don’t be too quick to admit fault in whatever damage happens, let your insurer handle it.
With all the above, you will be avoiding common insurance violations by business owners hence your claim won’t be delayed or denied. In addition, you must know that there are no cutting corners when it comes to hiring a lawyer for whatever reason. Going for the best possible lawyer goes a way in helping you win whatever case you may be involved in and also helps you stay on track in order to avoid legal tussles.