Preparing for the Claims Process Will Put You on the Road to Resolution

While you can’t prevent a claim, you can be ready for it. Understanding who is involved and how to prepare for the claims process will help ensure an efficient resolution so that you can resume normal operations quickly.

Participants in the process

When you experience a loss, there are several parties involved who will play a role in your claim.

• The Insured: The Risk Manager, but also often includes a Controller, Treasurer, Chief Financial Officer or Chief Operating Officer. These individuals are often charged with overseeing the reporting, reconstruction response and documentation/presentation of a claim against a commercial property policy.
• The Adjuster: A company adjuster or an independent adjuster reporting to a company examiner. Adjusters are charged with investigating a loss, recommending reserves, measuring a loss and settling a loss. They will inspect the damage, attempt to quantify the value of the loss, evaluate the coverage for the loss and, assuming they find coverage, measure the loss and settle it. Ideally, the adjustment process will be a positive, courteous and professional experience, but there are times when a difference of opinion may arise in terms of coverage and/or the value of the loss. Remember, a claim is like any other business dealing — at its heart, it’s a negotiation. Your ability to convincingly argue your position and support it with solid, factual-based evidence can often sway the outcome in your favor.
• The Broker: Your broker partner, like HUB’s team of claims management professionals, will help you report the loss, coordinate its overall management, serve as your conduit to the adjuster, assist you in developing your claim, present it and negotiate a settlement. In the event a coverage dispute arises, we will serve as your advocate to resolve the dispute favorably.

Stages of the insurance claims process

There are five main stages of the insurance claims process. You can prepare for this process by gathering relevant documents (receipts, invoices, proof of ownership), collecting photos/videos of the damage and writing down an account of the event (including any witness information).

Five stages

1. Contact your broker. Provide your broker with a detailed list of the property damaged or lost and any photos or videos that can help explain the circumstances. An adjuster will follow up with you as the claims process continues.
2. Claim investigation begins. Once reported, the claim will be investigated by an adjuster to determine the amount of loss or damages covered by your insurance policy. Any liable parties will be noted by the adjuster.
3. Policy review. After the investigation is complete, the adjuster will carefully review your policy to determine what is and isn’t covered and then inform you of any deductibles that may apply to your case.
4. Damage evaluation. To determine the extent of damage, your insurance adjuster may hire appraisers, engineers or contractors for their expert advice. After that is complete, the adjuster will provide you with a list of preferred vendors to help with repairs.
5. Payment. After repairs have been completed and lost or damaged items have been replaced, your adjuster will contact you regarding the settlement of your claim and payment.

The insured’s claim can consist of a variety of expenses all designed to assist in expediting an insured’s resumption of operations; for example, freight costs, equipment rental costs, temporary storage costs, etc. Please remember to keep the adjuster fully informed of your plans and attempt to secure the adjuster’s agreement prior to incurring these expenses.