When a catastrophe strikes an area, everyone seeks to file a claim accompanied by assorted documents. While the claim is the first and most important step, proof of loss in business insurance is a critical step in the process. In this article, you will learn what proof of loss really means.
What is a Proof of Loss?
Proof of loss is not the actual property damage claim. You must understand that this is a separate document along with many others in the filing for a claim, that plays a vital role in your insurance claim. The legal document formally details how much you’re requesting as claim from your insurer with attached supporting documentation that is signed or notarized. Filing a proof of loss in business insurance is required under most insurance policies. Usually, a signed proof of loss is provided by the policyholder within 60 days of request by the insurer.
What Should Be Included in a Proof of Loss?
This may vary from policy to policy. In most cases, the proof of loss must include the amount of loss that the policyholder is claiming, documentation that backs the amount of claimed loss, the date on which the loss occurred, the reason behind the loss, and identity of the party claiming the loss. It is important to check your individual insurance policy for what is required in your proof of loss document when filing an insurance claim. Take your time to contact your insurer if you are not sure. Completing the proof of loss document promptly may mean that your claims process can proceed more quickly.
Rejection of Proof of Loss in Business Insurance
Your insurance company will usually review the proof of loss the moment it is completed and submitted. Usually, the company issues a reply stating whether your proof is accepted or rejected with underlining reasons that may include incomplete paperwork with missing signature or information. Similarly, there are time durations after loss or damage when a claim can be accepted by your insurer, as stipulated in your policy. If the proof of loss is not presented within this time, it may be a reason for denial or rejection. Regardless, you will be told why your proof was denied and guided on how to put it right with specific details.
Is Proof of Loss Compulsory?
The devastation of loss may be overwhelming, and it can be a time of chaos and confusion. However, when the situation is calm, filing for a claim remains the ultimate goal. If your insurance company requests proof of loss in business insurance, you are required to provide it to proceed with your insurance claim or before you may file a lawsuit against the insurance company. If you do not comply, you may be seen as uncooperative with the investigation, resulting in the refusal of your claim. Assumptions do not come into play when filing for a claim. You do not assume your insurer is aware of specific information; rather, you need to provide details to back up your claim with proof of loss.
Tips to Help You File Proof of Loss Document
Keep the following tips in mind for a smooth filing process:
1. File on Time
The time frame to file a claim is 60 days, either before or after the loss. If you need an extension, request the same from your insurer.
2. Obtain a Second Opinion
Your insurer will send for an independent claims adjuster or a contractor to determine your claim’s value. You can also obtain the services of a third professional who is not related to your insurance company for an unbiased opinion.
3. Cross Check
Double-check your proof of loss statement before submitting it. Make sure that your policy number, claim number, policy term, and other items are all filled out correctly.
Understanding the role of proof of insurance and filling out accurate information in the same can play a vital role in either expediating or slowing down your insurance claims. For more questions about business insurance, contact the experts at East End Insurance Agency today. We are always available to guide you with your business coverage.