Claims

Why it’s Important to promptly report all claims

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Prompt reporting of all claims regardless of fault is the most important step to do.  Insurance policies are simply a promise made until a claim happens, however many people hesitate to report a claim or incident to their insurance carrier due to misconceptions and negative thinking that reporting claims will adversely affect their loss history.

Here are few reasons why you should promptly report all claims if you have an incident.

• Ability to Defend a Claim
  The longer it takes to report a claim, the less chance the insurance carrier has of putting together a strong defense.  Prompt claims reporting involving injury or damage to people other than the policyholder (third parties) is important to negotiate an early economical settlement. Late reporting could allow key evidence to be lost or destroyed, leading to a not-so-positive outcome for all parties involved
• Assist In Resolving Claim Promptly
  Reporting promptly, promotes early investigation with your insurance carrier that is vital in determining liability and damages. Obtaining key evidence, scope of damages and interviewing all parties while information is clear assures your claim is accurately assessed and given every consideration.
• Improve Subrogation Success
  When subrogation is needed to pursue a claim against the responsible party, it makes it easier for your insurance carrier to determine the facts obtain expert reports and evidence earlier to recover the deductible for a not at fault claim.  Subrogation enables an insurance carrier after paying a loss to its insured, to recover the amount of the loss from another who is legally liable for it.
• Prevent Additional Damage
  Prompt reporting allows immediate remediation that can prevent further damage. Ultimately lowers claim costs and helps keep premiums low.
  
• Late Reporting of Claims
  Late reporting can be detrimental to your overall claims performance and insurance premiums.  Immediate reporting is important for the insurance carrier to complete a thorough investigation and gather documentation. Insurance coverage is contingent on prompt reporting.  Please be aware that insurance policies have specified conditions and requirements for coverage which includes that it is your duty to report a loss just as soon as practical after the loss occurs.
  

Prudent action on your part when the claim is first made will help you and your insurance carrier successfully defend against unwarranted claims and allow proper payment of legitimate claims, thus protecting your business and reputation.  Always report claims/incidents promptly (even as a “record only”) so you adhere to your insurance policy conditions and duties.

Reporting of Claims
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