Living in a highly litigious society significantly increases the risk of minor disputes becoming costly lawsuits. When faced with an unexpected claim, Hawaii business owners want to know they are financially protected.
General liability (GL) insurance, in general, may provide comprehensive financial protection against third-party lawsuits, including claims of customer bodily injuries and damage to customer property, and may include claims involving libel and other advertising injuries.
Learn more about general liability insurance and how to file a claim properly.
What Is General Liability Insurance?
General liability insurance covers many common business risks, such as customer injury and property damage. It also protects small businesses from the high costs of lawsuits. It can even help Hawaii business owners fulfill requirements to qualify for contracts and leases.
Most companies can benefit from acquiring a general liability policy, especially Hawaii business owners that own or rent commercial space. Business owners who work directly with customers or clients can also benefit from a GL policy.
Although general liability insurance is not required by law in Hawaii, most business owners find it essential. It may be necessary in certain industries, such as construction, and may require a professional license.
In some instances, a mortgage company, landlord, business partner, or client makes it mandatory to have a policy.
Steps to File a General Liability Claim
When the unexpected happens, Hawaii business owners want to be prepared to prevent significant financial repercussions. Follow these steps to file a general liability claim in Hawaii.
1. Contact Your Insurance Provider
Soon after an accident occurs, Hawaii business owners should contact their insurance provider or broker. Providing advanced notice of an incident can help the subsequent investigation go more smoothly and resolve quickly.
In addition, all states have a statute of limitations regarding how long a person can wait before filing a claim. Avoid waiting to file a claim to prevent surpassing the statute of limitations and getting the claim denied.
The insurance provider will generally need to know the following:
Policyholder’s name- Business name
- Current contact information
- Type of coverage
- Policy number
- Description of claim
2. Ask Important Questions
Business owners should always have their general liability insurance information available to determine if the incident that occurred is covered under their policy. With the certificate of liability insurance policy in hand, ask the insurance provider important questions, such as:
- Is this particular incident covered?
- Will I be responsible for any expenses?
- What are the claim filing time restrictions?
- What are my options if a lawsuit is filed?
- When can I expect a follow-up?
- How do I contact the adjuster working on my case?
3. Document All Correspondences
Having ample evidence when making a general liability claim is essential to improving the odds of getting the claim approved. Keep track of any communication with the third party that the business is filing a claim against or suing.
Also, keep any information provided by the insurance company to reference later if needed. Hawaii business owners should keep meticulous records of all emails, phone calls, and face-to-face conversations regarding the case.
4. Consider All Legal Options
There is a chance that the case could proceed, resulting in the business getting sued. It is important for Hawaii business owners to consider all scenarios and prepare for each one accordingly.
If the business chooses to answer the claim, it must either admit wrongdoing or deny the allegations. If the lawsuit is deemed frivolous, a business owner can try to have the claim dismissed with help from an experienced lawyer.
A Hawaii business owner can also choose to settle the claim to avoid a lengthy and costly litigation process.
5. Work Alongside Your Claim Professional
After submitting the claim, a business owner will receive a claim number and the contact information of their personal claim professional, who will be responsible for handling the claim.
Hawaii business owners can expect their claim professionals to contact them at various points throughout the process to collect more information and ask questions.
Business owners can also contact their claim professionals directly to address any concerns that they may have or to check on their claim status.
Protect Your Hawaii Business with Atlas Insurance
Despite most Hawaii businesses taking extra precautions to keep their employees and customers safe from personal injuries and property damage, accidents can happen anytime.
When unforeseen incidents occur, general liability insurance can help preserve Hawaii businesses by covering their legal costs, damages, and any settlements up to the limit on their policy for covered claims.
At Atlas Insurance Agency, our team of experienced insurance agents helps businesses face various risks every day. To learn more about filing a general liability claim or to get an insurance quote, reach out to Atlas today at (808) 400-6634.