How do I make a business insurance claim?
Key takeaways:
The claims process will depend on the insurance company and your insurance policy but payments are usually made within 24 hours for successful claims
Along with your policy documents, you may need a crime reference number if the police have been involved, or witness statements when you fill out a claims form
A business insurance policy can cover you for legal expenses or compensation costs if you need to pay out for loss of earnings or medical costs to another person
How do I make a business insurance claim?
Take a look at your insurance policy to check exactly what is (and isn’t covered) so you know what to claim for.
Always look at any exclusions and check things like the excess so you know how much money you might be required to pay if you make a claim.
Before you start the claims process, you will need to gather all the paperwork and documents you need to make a claim.
You’ll find the contact details for the claims team on your insurance policy or any other paperwork you’ve received, or by looking up the company online. There will usually be a specific phone line for making a claim.
Your insurance company will tell you what information it needs, and if you don’t have this to hand it could lengthen the time it takes to process the claim.
Your insurer will tell you how to file a claim and what information to provide.
You can usually do this online with a claims form, simply by filling in the required details, and your insurer will then look at these and either accept your claim, ask for more details on it, or reject it.
1. Check your policy documents
2. Collect all the relevant information
3. Contact your insurer
4. Make a claim
What documents do I need?
Your insurance company will tell you exactly what it needs for your insurance claim but you will usually need to provide the following:
Your policy number
A detailed description of exactly what has happened and who was involved
Contact details for your business and accounts data if you’re claiming for loss of earnings
Details of anyone involved in the accident (including others affected and witness statements)
The date, time and location of the incident
Any photos or video evidence you (or anyone else) has taken
A crime reference number if you have one
What can I claim on my business insurance for?
The type of claim you are covered for will depend on your business insurance policy.
If you have public liability insurance, you’ll be covered against liability claims if a third party sues you because for loss, damage or personal injury.
This type of insurance usually covers:
Medical bills
Loss of earnings if someone can’t work because of the incident and future loss of earnings, depending on how long they’re out of work for
Legal fees
Transport costs, if for example the person is unable to drive
If you hire another person or persons, by law you need to have employer’s liability insurance. It provides cover for anyone working for you.
Most policies cover:
Legal expenses
Payments to employees for lost income
Medical bills for employees if they’re injured at work
If a customer sues you because they claim your work or advice you gave them caused them a financial loss, professional indemnity insurance can cover these costs.
Most policies cover:
Legal expenses
Payments if the client has lost money or income as a result of the incident
Cover for previous work carried out (you may need to pay extra for this)
Business interruption insurance can provide cover if you for financial loss because of an unexpected incident such as a fire or a flood at your business premises.
Most policies will cover:
Loss of income
Legal expenses
Loss or damage to business equipment
Public liability insurance claims
Employer's liability insurance claims
Professional indemnity insurance claims
Business interruption insurance claims
What is the most common business insurance claim?
One of the most common insurance claims made by businesses is for loss because of fire or explosion. It accounts for 21% of the value of all business insurance claims globally, according to the insurer Allianz.
The second largest cause of loss when it comes to business insurance is natural catastrophe, accounting for 15% of the value of claims, followed by faulty workmanship in third place.
Every day insurers in the UK pay out around £22 million in business insurance claims, according to the Association of British Insurers (ABI).
How long does an insurance claim take?
It’s impossible to say how long a business insurance claim will take from when you fill out a claims form to receiving a payment or repair work being arranged. That’s because each claim will depend on what has happened, how many people are involved, and the level of cover the business insurance policy provides.
If a claim is relatively straightforward and all the information is in place, such as details about the incident, a crime reference number if needed, and contact details of any other people involved, it may be quick to process.
However, if it’s a more complex claim, further details are needed, or the insurer decides to send loss adjusters to the scene of the incident, this will lengthen the time it takes for the claim to be made.
You should be told by your insurance company when you first make a claim what information it needs and roughly how long the whole thing will take.
How likely is it that my business insurance claim will be accepted?
At MoneySuperMarket, 88%* of business insurance claims are accepted.
However the likelihood of your claim being accepted or rejected will depend on what has happened and your insurance company.
There is a higher chance of your claim being accepted if you have the correct cover, all of the information requested and you contact your insurer within the time frame it stipulates.
If your insurance claim is rejected and you don’t agree with the decision, you can make a formal complaint to your insurance company. If after eight weeks you’re still not happy, or your insurer hasn’t replied to you, you can escalate the complaint for free to the Financial Ombudsman Service.
What happens if my claim is successful?
If your business insurance claim is successful you are usually paid within 24 hours, either with BACs or CHAPs.
If you need something to be repaired or work to be carried out, you are usually given a list of approved traders to use by an insurer. Alternatively you can sometimes select a trader yourself and be sent a payment from your insurer to use for this.
How quickly will my insurer pay out my business insurance claim?
It will depend on your insurer and the type of claim. However, if a claim is successful and you and your insurer’s claims team agree to you receiving a payment, this is usually transferred within 24 hours.
You will need to tell your insurer which bank account to transfer the money over to and it will confirm with you when this has happened.
How does the excess work in business insurance?
You may need to pay an excess when you make a business insurance claim. This is an amount of money you are required to pay, which may be a set amount of a percentage of the overall claim. For example, if you’ve agreed to pay an excess of £200 and the total cost of your claim is £2,000. Your insurer would pay £1,800 and you would pay the remaining amount.
Is business insurance worth it?
Business insurance covers lots of different scenarios. That’s why it’s ideal for business owners and self-employed workers to provide peace of mind that if anything goes wrong you won't face large financial costs.
It can cover all types and sizes of companies, including small businesses and landlord insurance for those with commercial property.
