5 Types of Commercial Insurance Claims You Should Know About

Insurance companies deal with all sorts of commercial insurance claims. Small business owners can suffer financial losses in various ways, so it is useful to understand the claims filing process. Many areas in the United States experience catastrophic events like hurricanes, earthquakes, and flooding. These result in property damages that cost tens of thousands of dollars to recover from, if not more.

You may think you don’t need to worry about most insurances, but that is not the case. Statistics indicate that roughly half of small businesses file a claim every ten years. Learning the intricacies of this process can protect you from financial ruin.

Let’s explore five types of commercial insurance claims you should know about.

1. Fire Damage

If you’re lucky, you won’t ever have to deal with fire damage to your commercial property since it is deadly. However, if you run a restaurant or own a manufacturing business, it is not improbable for a fire to occur. Filing a claim related to fire damage is a complicated process because you need to evaluate the extent of the damages.

Your possessions and property will need to be repaired, or you may need to invest in a replacement, which is costlier. For this reason, commercial business owners are urged to become policyholders for business income insurance. This protects them from losses related to fire damage and allows them to receive fair compensation.

The fire damage may have stopped your business operations, but you can still file a claim to reimburse you for operational losses. If you wish to save your business and yourself against heavy financial losses, you should always choose the best insurance for your needs.

2. Slips and Falls

Slip and fall accidents can lead to litigious action against property owners. If your customers fall into your store and get injured, they may sue you for damages. If you’re not insured and found to be negligent, you will need to pay for their damages out of your pocket.

Property owners are typically responsible for slip and fall accidents if they do not put up adequate hazard signs. If customers tripped, fell, and injured themselves while a warning sign was put up, they cannot file a claim against you. This means you must proactively improve your commercial property’s safety and follow optimal protocols to prevent injuries from occurring.

However, it is best to opt for general liability insurance since it can protect you against slip and fall claims. You may need to pay for your customer’s medical costs, legal fees, and lost income for slip and fall cases, so it is best to buy the necessary insurance.

3. Robbery and Theft

Most small businesses file robbery and theft-related claims all the time. Depending on your commercial property’s location, you may have to deal with people breaking and entering your premises with bad intentions.

Burglaries can also lead to property damage since thieves will break your door or smash your window to get in. However, you can protect yourself against this by opting for commercial property insurance, which covers these expenses.

Any possessions or valuables you lose during the burglary will also be compensated for, making it worth getting insurance.

4. Product Liability

Product liability is a commercial insurance claim that customers can file against a business if they receive a faulty product that injures them.

For example, there was an incident surrounding items called vaporizers or ‘vapes’ a few years ago where the batteries were exploding in people’s pockets and faces. This resulted in burns and personal injuries, leading to litigious action against the manufacturer.

If you don’t insure your business, you will have to legally pay for a bunch of costs you could have avoided. Many small business owners think they won’t have to deal with these problems until they do. This is why you should consider getting product liability insurance and look through the policies to find the best coverage for your needs.

All businesses have these risks, and it is worth buying insurance to account for them.

5. Trauma from Objects

The manufacturing or construction industries pose many risks to their workers. Workers can get hit by objects while working, resulting in serious injuries that leave them bedridden or in the hospital. In some cases, employees may die in these accidents.

Employers must opt for workers’ compensation, which is essential insurance coverage for financial expenses related to workplace accidents. You may need to cover your worker’s income while they are unable to work and pay for their medical bills.

If employees die during their jobs, this insurance provides benefits to their families. In America, it is a legal requirement to have workers’ compensation. Organizations like OSHA have played a part in giving workers their rights and protecting them from workplace accidents.

Morgan Elite Specialist Services are Texas claims professionals that specialize in handling insurance claims. If you’re struggling with your claims process, you can get the best legal representation out there at affordable rates. These Texas insurance adjusters will help you build the strongest case possible to win fair compensation for your losses. Contact them at 855-445-3404.