11/ 18/ 2004
by Jeffrey Moses
When fire, tornado, wind/hail/rain damage, major theft or other disaster strikes your business, certain steps regarding insurance need to be taken quickly and accurately. Disasters can leave a person emotionally distraught, just when clear thinking is needed most. The following list can serve as an orderly guide for what to do during such times.
If your property has been damaged, take steps to minimize additional damage. This should take precedent over all other activities because it could save you significant amounts of money, reduce future aggravation and help with your insurance claim. If a roof is damaged by wind or hail, for instance, buy a tarp or other material adequate to seal in the damaged area and prevent further deterioration. The quicker you do this, the stronger your position will be in your claim to insurance adjusters.
Contact your insurance agent(s). Do this even if you do not yet know the extent of damage or loss. Describe exactly what happened, including the cause of damage, the damage itself, the estimated extent of damage (make it clear that your description may not be complete), when the damage occurred, what you are doing to prevent additional damage and other pertinent facts. Thefts should be reported immediately to the police as well as to insurance agents. Do not inform others, including the press, of the dollar amount of the theft until you speak with your agent, attorney and police officials. In general, exact information of financial loss due to theft should not be made public.
Keep the evidence. Do not throw away damaged items, parts of building structures, equipment or interior furnishings until showing them to your agent and/or claims adjusters.
Your agent should record all damage information you supply and immediately contact the insurer so he or she can schedule a claims adjuster for a visit or phone interview, depending on the type and severity of damage or loss. Ask your agent about when you will be contacted by the claims adjuster.
Review your insurance policy. You should be well-versed in what you should expect as compensation, what your responsibilities are and what your agent should do for you during the claims process. Understanding your policy and your coverage will help you ask the right questions.
Business interruption claims. You should gather information about your company's revenue, salaries, ongoing bills and expenses, and average net profit. All these should be part of your business interruption insurance packet, but your insurer will want up-to-date information. If you will have to move temporarily to a new location, document costs, including leases, deposits, utilities, moving expenses, etc.
If you have specific questions regarding your role in the claims process, contact your agent. Don't take advice from associates, friends or family without assessing that advice carefully. They're not the ones at financial risk — you are.
