5 Mistakes Small Business Owners Make When Filing a Claim

Mistakes to Avoid words written on wooden blocks on a blue background

1. Not Reporting the Claim Immediately

One of the biggest mistakes small business owners make when filing a claim is not reporting the claim immediately. Your agent and company claim representative are there to guide you through the entire process. They are the experts and have the knowledge and experience to handle claims effectively. By reaching out to them as soon as possible, you can ensure that you receive the right guidance and support from the very beginning.

2. Not Documenting Damage and Disposing of Physical Evidence

Make sure to document the damage. Make a list of the damaged goods and property and take photos to accurately document the extent of the damage. This evidence will be valuable during the claims process and can help support your case. When possible, all physical evidence should be maintained so it can be inspected by your claim representative or an expert, if necessary.

3. Admitting Fault

It's important not to admit fault prematurely. Let the claims representatives do their job and thoroughly inspect all the evidence. It's their responsibility to determine fault based on their expertise and the available evidence. There may be underlying factors that you are unaware of, so it's best to leave the determination of fault to the professionals.

4. Not Understanding Your Policy

If you assume you know what is covered, you may be in for a surprise come claim time. Your local agent can help you understand and advise you on the coverages your business needs.

5. Not Taking Steps to Avoid Additional Damage

For example, you could have a contractor extract water or board up broken windows. Just don’t make any permanent repairs until your claim representative has seen the damage.


Remember to review your insurance policy to understand the specific requirements for reporting claims. Your agent is a great resource and can explain the provisions in your policy and help guide you through the claims process.

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