You are more likely to believe that a claim against you is bad news if you’re in business. It can be costly, either through higher insurance premiums or directly. Perhaps the most frustrating thing about claims handling is not the money. You can feel lost and then feel uncertain if you got the right outcome. These seven steps will help you regain control of your premiums and provide good value.
1. Describe the arrangements. Make sure you understand what to expect. Particularly, you need to be clear about the decision making process. Are you allowed to participate? Are you willing to? False expectations can lead to unnecessary stress and conflict. These points should be discussed from the beginning:
* The appointment and training of solicitors.
* The appointment and training of investigators.
* Admitting liability.
* Making offers.
* All payments, including any uninsured expenses you might have to pay.
* Feedback and lessons to be learned
This would make it so that everyone knows what to expect.
2. Request to be informed about the Reserve. This is the estimated amount that the insurers think the claim will cost if it is paid. A separate reserve should be made for legal expenses. As more information becomes available, the reserve(s) should always be reviewed. This information will help you prepare for the worst and reduce shock at the end.
3. Respond promptly to any correspondence sent by the insurers or agents.
4. Contact them if you don’t understand a question or do not know the answer. Don’t leave it unanswered. If they answer “I don’t know” or “I cannot find out”, tell them. It is their responsibility to explain themselves and not yours to guess, especially if they use jargon.
5. Track progress. Both sides waited to hear back from the other, which led to claims being lost. Employees of insurance companies are just like everyone else: they forget things or believe they have done them.
6. Question decisions and opinions. Ask for clarification. If you’re still unhappy, seek a second opinion within the company.
7. Be sure to receive feedback about lessons learned. What caused the accident? What was your fault? What can you do to stop it from happening again? Even if you were successful in defending the claim, there may still be ways that you can improve.
Remember that it is your claim and you have already paid your premium. So get the most for your money. Your insurers will be happy to assist you. They should also not mind taking the time to help you. In the end, everyone benefits when you take an interest in managing your risks and improving your business. If your insurer is not a person who values a quiet life and no intrusive clients, you can do them a favor by moving your business.
You and your staff may not be able to take part in the full extent of the claims process. A professional claims handler can help you do this for you, according to your instructions. Because it is your business, you must be aware of the risks and claims. However, you don’t have to answer every phone call or manage every correspondence. You are in control.