Most people understand that insurance companies have a duty to reimburse insureds for commercial property damage not excluded by their policies. What’s lesser known is that if a loss does occur, insureds also have duties they owe to their insurance company. Many commercial property insurance policies include language detailing steps that must be taken following a loss. Failure to fulfill these responsibilities can potentially lead to a claim being denied, a delay in claim payments, nonrenewal or even cancellation of the policy.
This article discusses typical duties required of insureds by commercial property policies and the steps to ensure claims are handled efficiently and damages are fully reimbursed up to the policy limits.
Each commercial property policy will tailor the duties of the insureds to the specific circumstances of their coverage. However, here are common responsibilities most policies require in the event of a loss:
After the loss event has occurred and everyone is safe and a claim has been reported to the insurer, the organization’s focus should shift to minimizing the loss and protecting the property from future exposures. To aid in this process, the adjuster or other claims professionals should be contacted for suggestions, if possible. They can often make recommendations based on first-hand knowledge of similar situations.
Protecting undamaged property and minimizing loss frequently involves the following:
Dealing with the policy requirements for filing a property claim is only one element of responding to a loss. Other suggested actions include the following:
The suggestions made here are necessarily broad and general. For more detailed recommendations tailored to your specific operations, contact us today.
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