Businesses purchase insurance to protect themselves and their assets in the event of an accident or other liability. However, the process of filing a claim and receiving compensation can be confusing, even for the most experienced business owners. Any delay between the incident and the claim increases the chances of having claims reduced or denied. With so many different active policies, including general liability, workers’ compensation, commercial property, and more, many business owners in Hawaiʻi struggle with the claims process.
This guide aims to help business owners move through their claims process seamlessly and receive their payouts with the minimum possible delay.
Proper Claim Process and Good Habits
Though interpreting and updating insurance policies can be a difficult and time-consuming task, these steps can make filing a claim as efficient as possible for business owners in any industry:
Step #1: Know Your Insurance Policy
The details of property insurance can be confusing, yet, in order to file claims properly and avoid delays, business owners must know what their policy covers and excludes. Any gaps in the owner’s understanding of their policy can result in issues with their claim fulfillment. A proper claim process relies on teamwork and communication between business owners and their insurance companies so that everyone is on the same page when it comes time to file.
Key Takeaway
The business owner’s goal should be to find local insurance providers who are experienced with the distinct challenges of operating a business in Hawaiʻi and who can communicate the policy clearly.
Step #2: Prevent Further Damage as Quickly as Possible
Property damage can continue to get worse after the initial incident has ended. These additional losses may not be covered, or they may complicate the claims process. To prevent the scope of their claim from growing, business owners should take steps to stop the flow of damage as quickly as possible.
This may mean documenting initial damages and covering damaged doors, roofs, or windows to prevent further water damage or re-securing entrances after a break-in. Confirm with the relevant safety department, including fire, police, or utility, whether it’s safe for employees to re-enter the premises.
Key Takeaway
Property damage may not be an isolated, static incident. To prevent unnecessary losses, take steps to safely secure the premises after the event.
Step #3: Accurately Document All Damage
To validate a claim, business owners must show the insurance company timely proof of their losses. By presenting too little or inaccurate documentation, business owners may cause a delay in their claim; in some cases, their claim may even be denied altogether.
Accident documentation should include:
- Multiple photos or videos of each damaged area or item
- Written descriptions of the damage
- Details related to the timing of the incident
- Witnesses or suspects
- Possible hidden damage requiring further investigation
For example, if a roof cave-in damages a machine, photos of the physical damage should also include a request for further investigation into its operation. If turning it on results in smoke or strange noises, these should be documented as well to include a cause for replacement in the claim.
Hawaiʻi law requires insurers to verify that they received a business’s claim within a certain time frame (no more than 15 days unless noted by the policy). Thorough documentation and timely submission help businesses meet timelines, avoid processing delays, and prevent claim disputes.
Key Takeaway
Accident documentation can never be too detailed. Business owners must present a Proof of Loss statement to their insurance company, which will require timely evidence of the damage to support the claim and prevent delays.
Step #4: Compare the Offers of Multiple Repair Contractors
The insurance company may offer a choice of professionals to carry out repairs. Compare multiple quotes from additional highly-rated contractors in their area to find the best bid.
Price is a factor, but owners should also consider the value of the services being offered, including the materials and methods used to conduct repairs. The goal is to find the best company for the job to prevent further delays in the claims and repair process.
Key Takeaway
Insurers can suggest high-quality contractors worth considering, but their suggestions may not always offer the best value. Business owners should do their own research into local contractors to compare multiple bids before beginning repairs.
Step #5: Organize and Submit the Proof of Loss Statement
A Proof of Loss statement is a required document that provides the insurance company with evidence of the business’s losses. This includes the written descriptions and photos taken at the time of the incident, as well as detailed estimates of repairs and a full value claim for the property, equipment, and inventory affected.
An organized and detailed statement gives business owners the best chance of submitting their claim without delays. However, under Hawaiʻi’s insurance laws, insurers may require additional forms. Local insurance companies familiar with regulations specific to Hawaiʻi or certain islands can help make sure the business’s claim remains compliant.
Key Takeaway
Proof of Loss statements are requirements for business owners, but they can also be assets in their claims process. Working with a local insurance consultant can ensure the value of their losses is fairly calculated to the area and maximize their settlement, according to the terms of their policy.
Step #6: Maintain an Accurate Claim Journal
Filing an insurance claim takes time and relies on accurate communication between business owners, insurance agents, and contractors. To expedite the process and prevent delays, business owners should keep a claim journal for reference. This should include:
- Detailed notes about the incident
- Time of the damage
- Assets lost
- Repair process
- Statements made by insurance or construction personnel
- Date and time of claim filing
- Dates, times, subjects of communication with insurance personnel
- Contact information of insurance POC, witnesses, and contractors
To supplement the claim journal, business owners should communicate by email whenever possible. This will keep an objective record of communication to help business owners recall the steps they need to take, the people they have contacted and when, and the deadlines they need to follow.
Key Takeaway
Filing a claim without delays requires accurate details and deadlines, which is easier through email or with the help of a written claim journal. Even if phone communication occurs, business owners should ask for a written summary of the conversation or provide one to the agent to confirm the information and next steps discussed on the call.
Work with Local Insurance Providers to File Business Insurance Claims Without Delays
Business insurance in Hawaiʻi holds more significance than in other states due to the frequency of claims involving natural disasters, tourism-related liabilities, and more. Hawaiʻi may also have distinct requirements for filing claims, such as a statute that requires insurance companies to respond to business owners about their claims within 15 workdays. This is just one of the many rules and regulations that business owners need to recognize to get through the claim process successfully.
At Atlas Insurance, our local team recognizes the need to file effective insurance claims with minimum delay, including the steps needed to help Hawaiʻi business owners get through the process more easily. For nearly a century, we have helped local businesses find insurance solutions personalized to the exact needs of their business, including the regulations specific to their location. Contact us today to find the right policy for your business.