Avoid These Costly Mistakes in Commercial Property Insurance Claims

Commercial property insurance protects businesses from financial losses due to damage, theft, or unexpected disasters. Filing a claim should be straightforward, but simple mistakes can delay payments, reduce claim amounts, or even lead to denials.

Avoiding these common errors can help ensure a smoother commercial property insurance claims process and better protection for your business.

1. Failing to Document Damage Properly

   One of the most common mistakes businesses make is not documenting damage thoroughly. Insurance companies require clear proof of the loss to process commercial property insurance claims.Without proper evidence, proving the extent of the loss becomes difficult, which could lead to delays in processing payment

• Take photos and videos of all affected areas immediately
• Do NOT throw anything away until the adjuster has an opportunity to review
• Maintain updated records of business assets, including receipts
• Secure copies of police or incident reports for additional proof 

2. Waiting Too Long to File the Claim

   Delays in reporting damage can complicate the claims process. Most policies require prompt notification; missing deadlines can result in a reduced settlement or a denied claim.

• Report the damage to your insurance provider as soon as possible
• Review your policy to understand specific reporting deadlines
• Keep a record of all communications with the carrier for reference 

3. Overlooking Policy Details

   Every insurance policy has coverage limits, exclusions, and deductibles. Many business owners assume their policy covers all damages, only to be surprised when certain losses are not covered.

• Read and understand your policy as soon as possible. Having an understanding of your policy before an incident occurs
• Speak with your provider to clarify coverage details
• Keep a copy of your policy easily accessible

4. Making Repairs Without Insurance Approval

   After property damage, businesses may rush to repair, but unapproved work can create issues. Insurance companies often require inspections before major repairs begin. If the insurer has not approved the repairs, they may not be covered.

• Make only temporary repairs to prevent further damage
• Wait for an adjuster’s assessment before beginning major repairs
• Keep receipts for emergency fixes for possible reimbursement

5. Providing Incorrect or Incomplete Information

   Submitting a claim with missing or inaccurate details can slow down the process. Insurance companies need a complete and accurate picture of what happened to evaluate the claim correctly.

• Double-check all claim forms before submitting
• Provide a detailed and truthful account of the incident
• Submit any supporting documentation requested by the insurer

Protect Your Business with Tompkins Insurance

Filing a commercial property insurance claim does not have to be stressful. Avoiding these common mistakes can help businesses receive the necessary coverage without unnecessary delays. Proper preparation and expert guidance make a significant difference in claim outcomes.

At Tompkins Insurance, our expert team is here to help businesses understand their policies and ensure that claims are handled correctly.

Contact us 24/7 at 1-888-261-2688 in New York or 1-888-601-2611 in Pennsylvania to learn how we can help protect your business.

Also Read: What Factors Affect the Cost of Commercial Property Insurance