 Timely reporting of claims is a crucial element of the claims process and should be well supported by the policies and procedures of your institution. Failure to report a claim in accordance with the policy’s requirements can result in a claim being denied, or worse, having the entire policy voided. Furthermore, promptly reporting claims enables you to take full advantage of the resources and expertise provided by your carriers.
To illustrate, it’s easy to see why reporting a burst pipe immediately is critical. Until the pipe is repaired, water will continue to cause further damage to the property. The more damage water causes, the more it costs to repair the damage. In 2014, the University of California Los Angeles suffered a water main break, releasing 75,000 gallons of water per minute–ultimately more than 20 million gallons–causing severe water damage by flooding subterranean parking structures and the Pauley Pavilion sports arena, as well as damaging other structures and causing business interruption losses. Fortunately, campus risk management immediately informed their excess carriers of the circumstances, who were then able to provide consultative expertise as well as send local and excess carrier adjusters onsite with resources to assist in the remediation process. The prompt reporting by campus risk management was essential in preventing further damage caused by delays. With general liability, the need to even report a claim or incident is not always as obvious as a burst pipe in a building. However, it is still critical that you report instances of even possible claims to your carrier “as soon as possible” or “as soon as practicable.” After all, an insurance policy is a binding contract between two parties that often includes strict reporting requirements for claims. While there are many reasons organizations would delay or exercise a reluctance to report claims–such as fear of an increase in premiums or not realizing a claim is reportable until sometime later–to delay beyond what a “reasonable person” would do in submitting notice could compromise the insurance agency’s ability to settle the matter expeditiously and thus forestall your case. Avoiding prompt reporting can result in your insurer deciding the following:
The sooner a claim is reported, the sooner it can begin to be managed and the less it will ultimately cost. Contact an insurance professional at USA Mutual Insurance if you have any questions or concerns regarding claims reporting.
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 Business insurance coverage is a vital necessity for every business. Many financial investors and lenders may require you to have this coverage before doing business with you, and the protection that it offers makes it a wise investment in the future of your company. Read on to learn some valuable facts about property and casualty insurance that will help you when you're shopping for your commercial coverage.
TWO TYPES OF PROPERTY AND CASUALTY INSURANCE Property and casualty insurance can be divided into two categories. Personal lines may be the most familiar to individuals, as this is the type of property and casualty insurance that is a part of auto or homeowner's insurance. The other kind, commercial lines, accounts for nearly half of the property and casualty insurance industry. Commercial lines include the many different insurance coverage designed to protect businesses. COMMERCIAL PROPERTY & CASUALTY COVERAGE Though they are generally packaged together, commercial property and casualty insurance are separate insurances that cover different things. Commercial Property & Casualty protects your company's property, buildings and the contents of those buildings from theft, accidents, and other potential losses. The policy may cover the replacement cost for those items, or it may provide a cash value for the items when they are lost. The type of reimbursement in the policy will determine what your insurance premiums will be. COMMERCIAL CASUALTY INSURANCE COVERAGE Commercial casualty insurance, also known as commercial liability , provides your business with protection against legal actions. These legal actions may include lawsuits filed for an injury, for negligence involving your business or for property damage caused by your business or employees. Casualty insurance will protect your business if a customer is injured on your property, and many financial lenders and investors will require you to have this important insurance protection. Casualty insurance coverage will have a limit, but it will cover a variety of expenses, including medical bills, legal expenses and financial settlements up to that limit. PROPERTY AND CASUALTY INSURANCE AND THE WORLD ECONOMY Commercial insurance plays an important role in the proper function of the world economy . In fact, without commercial insurance, including property and casualty, the economy would effectively shut down. Through their business insurance policies, insurance companies assume the risks that are always present when goods and services are produced and provided. By doing this, they relieve economic and legal pressure on the businesses, allowing them to thrive and power the economy. ADDITIONAL TYPES OF COVERAGE THAT MAY BE ADDED In addition to the protection offered by commercial property and casualty insurance, you may choose to add additional business insurance coverage that suit your business needs. Business income insurance, or business interruption insurance, will cover the cost of replacing your lost revenue and any extra expenses if your business has to shut down after an accident or incident occurs. It may also be valuable if your business is required to relocate while repairs are made. Commercial umbrella liability enhances your existing liability coverage, filling in many of the gaps and generally broadening the coverage. Employment practices liability is a valuable protection for your business, insuring against the costs that will arise if an employee disputes their termination from the company, or if they file a discrimination or harassment lawsuit. Some other types of insurance that cover professional liability, supply chain risks, and even terrorism may also be added to your commercial property and casualty insurance policy. When you understand the function and value of property and casualty insurance, it is easy to see why this type of business insurance is so important. After evaluating your business needs, you can work with your insurance broker to customize a policy protecting you, your business and your customers from harm. If you are interested in hearing more about P&C insurance and how they can benefit your business or want to know how to get started, you can click here to contact the insurance professionals at USA Mutual Insurance. |
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