Sunday, November 12, 2017

Delaware Business Insurance Update, From CNC Insurance Associates. “ The Importance of Reporting Potential Claims” 11-12-17

In the course of business, you may find yourself thinking that certain situations or incidents may require you to call your insurance broker. The incidents go by and seemingly they resolve themselves and you go about running your bsuiness and never make that call. Fast forward  a couple of years from now and that incident that you thought was nothing has now turned into a claim or legal action against your company. Now you make the call and your insurance agent turns in the claim to the insurance company. The insurance company then denies coverage because you did not report it in a timely manner.  You cry “foul !”, and find yourself out in the cold and in a battle with your insurance carrier.
This situation does happen , although very infrequently. Most insurance company policies have provisions in them that require policy holders to report “claims”.  Since the definition of what costitutes a “claim” varies from one policy to the next, the safest thing to do is call your insurance professional when things happen.  As a business owner you know when events take place that could lead into a possible insurance issue. When you talk about it with your broker, they will most likely advise you to report on a “Reporting Purposes Only” basis. The insurance company will note the record but not set up a claim or reserve. This type of reporting does not hurt your loss ratio. If this incident develops into a claim, you already complied with the reporting provisions of your policy. This is the best way to make sure that you avoid a lack of reporting disagreement with your insurance company. Until next time be careful out there and know your risks.

G. Kevin Nemith CIC, CRM.
 CNC Insurance Associates a member of the Hilb Group