Many years ago, I was at a family event where one of the uncles was very vocal in his protests about the high cost of insurance. He felt it was just a “rip-off.” As it happened, one other family member was a senior executive of a large insurance company. He said to the uncle that he would give him free insurance for a year on one condition. That condition was a promise that there would be no claims. The uncle wouldn’t take him up on it. We never know when we might be struck with an event where we need insurance.
So, what happens if you have a claim? That’s why you bought insurance in the first place. I spoke with several claims experts and asked them this question – What is your best advice to an insured who has a claim? Here’s what they had to say:
Before you have a loss – Have an adequate inventory and update it regularly. You could send a copy to your broker or at least keep a copy somewhere safe. Proving your loss is your responsibility; having an inventory of your stock and equipment or any other contents is invaluable.
Minimize the loss to the best of your ability. For example, if it’s a water-related claim (common these days), start cleaning up the water and rent dehumidifiers to help reduce downtime. Pretend you don’t have insurance. The expert claims manager I spoke to said that not once has he denied reasonable costs to mitigate the claim.
If there is any evidence, retain it! Let’s say you just had a plumber in to fix a piece of equipment, and that equipment may have caused the problem.Make sure you keep any parts and take pictures. Your insurer mayhave the right to subrogate – in other words, perhaps the plumber’s negligence caused the loss, and he should be held accountable.
Let’s talk about downtime. A loss can more than likely cause adisruption in your business, which either reduces or eliminates your income for some time. Business interruption is common coverage now. And although that is the case, it is still very misunderstood.You need to have good financial records that monitor yourbusiness’s trends. Work with your adjuster and your accountant to help you determine what the amount of recovery may be.
In the event of a third-party claim, Remember to Be Patient! It takes time to gather all the facts. The Adjuster will assess those facts. Every story has two sides in auto and liability claims; somewhere in the middle lies the truth. Make notes as soon as you can. Pictures are always good, too! People’s memories change over time.
And finally, perhaps some of the best advice.
Remember the three C’s:
- BE CANDID
- CO-OPERATE
- REMAIN CALM
Help your insurer to help you! The bottom line is that insurance is a contract. If you’ve ever watched Judge Judy, she always says, “Everything is in the four corners of the agreement.” In your case, it’s an insurance policy. A special thanks to all my “experts” for their input. Great tips for the consumer.
For more information on claims and how to get help with yours, reach out! Always happy to help.
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www.heathercournoyer.ca
Heather Cournoyer, CCIB, CIP, CGMA
heather@thorinsurance.ca
