(800) 869-8643

admin@hayesbrokers.com

Your Guide to Property Claims

Your Guide to Property Claims

We hope it never happens to you, but property claims do happen. Whether it is a break-in, a tornado, or a fire, we’ve got you covered.  If it’s your first claim, you may not know what to do. Luckily your policy gives you a good idea of what your next steps should be, in a section usually titled “Duties In The Event Of Loss Or Damage”. First Things First The first question you need to ask yourself is: “Was a law broken?”  If so, you should immediately contact the police. Whether this was a burglary or a robbery, the police should always be the first call. If no law has been broken, you can move on to the next step. Timing Is Everything As per the Building and Personal Property Coverage Form (CP 00 10): Property damage may be compounded over time due to weather and other factors, so reporting damage in a timely fashion is important. As soon as you are aware of loss or damage to your building or contents, you should notify your broker or your insurance company. The company will need a description of the damage, including how and when it occurred to be sure that the damaged property is covered under your policy. Failure to report property damage or loss in a timely manner could result in reduced claim payments. Then What? Once you have reported the damage or loss to the insurance company, your duties are still not over. The policy states that upon reporting you must: You must protect the property from further damage or loss. Be sure to keep records of...
Your Guide to Liability Claims

Your Guide to Liability Claims

After years of faithfully paying your insurance premium, the day has finally come: you’ve got your first claim. This is why you have insurance! However, you’re not sure what to do next. Luckily your policy gives you a good idea of what happens next, in a section usually titled “Duties In The Event Of Occurrence, Offense, Claim Or Suit”. Timing Is Everything The first thing the policy tells you is that the insurance company expects to be notified “as soon as possible of an offense or ‘occurrence’ that may result in a claim”. Even if the injured party hasn’t filed a lawsuit or made a formal claim, if you expect some sort of a claim from the occurrence, you should notify the insurance company right away. Notice is particularly important if you have a claims-made policy, such as directors & officers coverage. You could wait until you receive a demand letter or lawsuit, but depending on the timeliness of the notice, the carrier may be within their rights to refuse to defend the claim. What To Report So what does the insurance company need to know in order to open a claim file?  The policy is very specific about this, as well. The Commercial General Liability Coverage Form (CG 00 01) reads as follows: (Property claims are handled a bit differently and will be discussed in another blog post.) All of the above needs to happen in the event of an occurrence that may become a claim. Should you receive a claim letter, a letter of representation or a lawsuit, the policy advises you to do the following: It...