Business Insurance Claims: How an Independent Insurance Consultant Can Help
When an accident, natural disaster or other event impacts a business, filing an insurance claim might seem like one more battle to fight. Business insurance claims are often time-consuming, drawn-out processes. There’s an easier way ─ in many instances, an independent insurance consultant can assist with a claim and save you money by discussing the issue with the business’ insurance company.
A business may file a variety of insurance claims every year ─ business interruption, property damage, workers’ compensation claims or seek fees for litigation connected to employment discrimination suits. Seeing a claim through to completion takes diligence and the right expertise. An insurance company might respond that there is no claim, but you don’t have to take ‘no’ for an answer.
An independent insurance consultant can assist you in reviewing the right information, comparing the correct data and discussing the possible claim with your insurance company. A few examples:
- Business interruption. A client experienced damage to one-quarter of its building from a natural disaster. The business owner didn’t file a business interruption claim because the company was able to get right back into business. The staff worked overtime and extra people were scheduled, but the sales did not meet expectations for a month after the disaster. An insurance consultant pointed out that this was a business interruption loss and suggested filing a claim. The consultant assisted the client with the claim presentation and expects a significant recovery.
- Legal fees in defense of an employment suit. A company was sued after firing an employee. The company executives countersued and didn’t put the expenses in their insurance claim, which their insurance company was denying. The company hired an insurance consultant to move them forward. Their total legal expenses were about $300,000 ($150,000 of expenses from a sideline case), but they had only submitted $150,000. The consultant suggested submitting all of it before starting to discuss the issue with the insurance company. After about nine months, the company was able to achieve a $130,000 offer instead of the initial $30,000 offer.
- Insurance company denying claim. An insurance company might deny a claim for a variety of reasons. One client’s claim for employment practices was denied because of late notice. An insurance consultant worked with the client to get them a payment, which the insurance company had originally denied.
Savings and less stress ─ two good reasons to have an independent insurance consultant help guide the claim process, and discuss all disputed information with the insurance company on your behalf.