Commercial Property Insurance Claim

The process of buying insurance can seem easy, but not all insurance is the same and ensuring you have the right or best commercial insurance is important. Having properly crafted insurance can mean the difference between coverage and no coverage and/or a smooth or bumpy commercial insurance claims experience. We wanted to highlight this and help explain how does the commercial insurance claims process works? Unfortunately explaining how does the commercial insurance claims process work is not a simple or easy thing and some commercial insurance claims can take three to five years to be fully resolved.

The first step towards understanding the commercial insurance claims process is understanding who are the parties/teams/people involved. There is almost always a:

An insured who has incurred a loss or/claim
An insurance broker who represents the client and their best interests.
A commercial insurance adjuster who is an insurance claims professional that works for an independent organization (or sometimes the insurance company) that assists with the management of the claim. Adjusters often have some authority to settle and/or pay claims, expenses etc. on the insurance companies behalf should a claim occur.
The insurance company that is paying the costs associated with working through the claim to indemnify (a fancy word for put the insured in the position they were in prior to the loss/claim) the insured.
Ultimately all or some of the above parties above need to collaborate to gather details, understand the events that led to the loss/claim and find an agreeable financial amount to ensure all parties are satisfied and agreeable.

What Are The Steps Involved In The Commercial Insurance Claims Process?
To answer the question “how does the commercial insurance claims process work?” you need to also understand that there are a number of steps that need to be followed and that based on the size, complexity, clarity etc. of each claim the steps can and typically do differ. Below is a list of some of the typical steps in the claims process:

Coverage review and confirmation
Confirmation or declination of coverage communicated to the insured
Assignment of parties involved to handle the claim (ex. lawyers, engineers, investigators etc.)
Submission and review of claims, details, documentation, facts etc.
Determination of amount and types of coverage applicable
Offer to settle or pay claim
Release signed by parties involved
Payment(s) made