It’s something you hope to never have to do, but making a claim on your insurance policy is something you might have to face at some point. Whether you’re claiming for damage to physical property, or are facing a lawsuit, navigating a complex claims process can add more stress to an already stressful time. Although every policy is different in terms of the claims process, there are some common practices which will apply to most insurance claims. Let’s take a look at what to expect if you need to make a claim on your insurance policy:

The first, most obvious step to take when you need to make a claim is to contact your insurance broker. Before doing this though, it’s wise to make sure you have as much detail as possible ready to provide. For example, if you are claiming on a policy where there has been damage to physical property, (such as may be provided by a Business Insurance pack), try to have details such as dates, items which have been damaged/stolen, photos and evidence to provide to support your claim. On the other hand, if you are making a claim on a different type of insurance policy like Professional Indemnity insurance, you’ll need to have ready information in relation to the allegations that are being made against you, this can include electronic files, emails, notes and transcripts, letters of demand, or communications from a regulatory body or legal firms.

Another point to note is that if you hold Professional Indemnity Insurance, you are required to notify your broker as soon as you become aware of a ‘circumstance which may give rise to a claim’. This can be in the form of a demand, complaint or other expression of dissatisfaction. It is not enough to wait until another party commences legal proceedings against you, as this may result in the claim not being covered

Once you’ve contacted your broker and outlined the full situation, you’ll most likely be asked to provide relevant evidence and documentation to support your claim. Again, the type of evidence you’ll need to provide will depend on the type of insurance policy you’re claiming on. If you’re claiming on physical property damage, examples of documentation you may need to provide include photographs of damage, and receipts. If you’re claiming on a policy like Professional Indemnity, you’ll need to provide as much paperwork which relates to the claim as possible. For example, evidence of interactions between you and the client which may include emails and notes of your conversations. This is where good record keeping can make a big difference, as it can determine how well your legal team will be able to defend your claim – you can read more here about what good record keeping entails.

Most insurance policies will have an excess, but the point at which they need to be paid may vary. For example, under policies where there is property involved, such as home, car or business insurance packs, the excess may be payable upfront when the claim is submitted, or at the end of repairs. Under some insurance policies which cover liability, the excess is required to be paid towards the legal and defence costs when the claim is accepted by the insurer and this is commonly referred to as a cost inclusive excess. Other insurance policies may have a cost exclusive excess , meaning that the excess is only required to be paid when the claim has been settled, with no excess paid towards the legal and defence costs when the claim is submitted to the insurer.

Making a claim, might affect your renewal premium – it may be higher as a result of the claim payment. This is because your claims history is one of the factors which goes into calculating your premium, and generally, your premium will be higher, if claims are required to be made on an insurance policy. The intention of this is not to penalise you for making a claim, but simply because the claims history is a significant factor which impacts an insurance premium with most insurance policies.

Making a claim can be a stressful time, and the last thing you’d need is a complicated process. That’s why when deciding on a broker to arrange your insurance, it’s important to consider the claims process. A broker with a deep understanding of your industry, as well as strong knowledge of insurance terms can advocate for your business in the event of a claim.