How to Prepare and File
a Business or Commercial Claim

Claim preparation after a business or commercial loss is more complicated than other property claims.

Insurance policies for businesses are longer and more complicated. Additional coverages and exclusions are often provided using supplemental forms, some at the insured's request (at possible additional cost), and some provided to all insureds. What might be, at first glance, a narrow policy benefit, might come in a variety of forms.

Some examples of coverages with large variations include business income loss, auto coverages, theft by employees, and many others. It is imperative that claim management include competent advice from an insurance loss professional. Professionals engaged in the process include attorneys and accountants, more often as the losses are larger.

Proper review of insurance coverage before a loss occurs is a key tool for risk avoidance.

Loss management, in the context of going business concerns, often addresses damage to physical property, but may also address lost business income. Examples of the kinds of losses which various businesses might incur include:

• A retail store with a fire damaging the leased premises and inventory, closing operations for an extended period
• A four unit, residential structure with a fire in one of the units, causing fire, smoke and water damage to the units, rendering them uninhabitable
• A large apartment complex, with on-site management, offices and employees, substantially damaged by hurricane force winds and flood damage
• A warehouse and trucking facility, closed by an explosion at an adjacent, unrelated business
• A restaurant with BP spill related losses, due to fishery closures

In each of these cases, whether there is insurance coverage depends on the policy, and the forms and exclusions within that specific policy -- some losses are covered, and others may be excluded. The advice of a competent insurance loss professional is critical in discovering, valuing and submitting a claim to the insurance company.

Even if certain portions of a loss are uninsured, there may be a claim against another negligent person or business.

Plan, in advance of any loss, for minimizing risk -- risk avoidance includes recovery planning, insurance coverage analysis, and more.

After a fire, flood or other loss event:

• Seek the advice of a competent insurance loss professional
• Take steps to resolve claims related to property damage -- some general pointers are here
• Assemble financial data for an extended period before the loss, in aid of estimating the loss of business income after the loss.

Mitigation of damages should always be part of your planning after a loss.