What to Do in Cases of Claims in Business Property Insurance?

You were careful and took every precaution , but that dreaded day arrived. An unpleasant and unexpected situation, which we call an accident, occurred, putting your or your company’s assets at risk… As a well-prepared person, you took out business property insurance , right?

If the answer is positive, said loss will be covered by your policy! In this text, we will explain what an accident is, how they are characterized, how to activate the insurance in the event of an accident and what the rights are of those who take out this type of coverage. Check out!

What is, after all, an Insurance Claim ?

The name is not the most pleasant, but the concept has its good side. We say that an accident occurs when any event occurs that is covered by the contracted insurance.

Therefore, the claim has a better side than any other problem that could happen to someone or their property: it is partially or fully reimbursed by the insurance company.

To define whether a claim represents a partial or full loss, insurance companies use an objective criterion: the value of the repair or renovation of the asset. If it is less than 75%, the loss is defined as partial. If it is greater than or equal to 75%, then the damage is full.

How to act in the event of an Insurance Claim ?

In the event of an accident, the insured must take some essential measures, such as immediately reporting to the authorities (Fire Department, Police or Civil Defense, depending on the incident) and contacting the insurance company, through its call center. , and with your broker .

Each communication is responded to with guidance on how to proceed with the process. Therefore, if your insurance is business , it is important to ensure that your employees are properly guided to act, if necessary.

At this point, one of the main steps is to check the policy. It must describe the procedures necessary to receive insurance compensation, known in the insurance field as claims settlement, including a list of documents that need to be presented to activate each type of coverage.

This list of documents is sent to the insurance company accompanied by a detailed description of the lost property and the losses suffered. The list of all damaged items contains information such as quantity, model and estimated value to recover the lost item.

What is the procedure to speed up the insurance company’s analysis?

When an accident occurs, the best thing for everyone is for the incident to be investigated in the most transparent, truthful and quick way possible. A well-done inspection is a guarantee of receiving the amount due quickly and without further bureaucracy.

In the case of companies, this concern reduces the possible loss of productivity caused by the accident. To start the process, provide the insurance company representative with access to the accident scene and provide all requested information, including providing the relevant documents.

If police or judicial measures are necessary to clarify the damage, the insured must cooperate. The policy owner must make an effort to preserve the scenario in which the damage occurred and facilitate the inspection, only starting any reconstruction or renovation after due approval.

In the case of judicial, extrajudicial or administrative notifications, the insurer must be notified so that appropriate measures can be taken, in addition to informing the existence of any other insurance related to the same risks.

The insured must not, under any circumstances, modify or allow modification of the asset with which the loss occurred. The only possibilities in which this is advisable are the express order of a constituted authority or the need to preserve the object from further damage.

What documents are required?

This list varies greatly depending on the type of insurance, but it is important, from the outset, that the company has essential documents on hand, such as the articles of association, CNPJ, numbers and copies of partners’ documents, etc.

To give dimensions to the losses, various items are requested, such as reports, repair estimates, proof of expenses, police reports, among others. It is also up to the insured to ensure that the losses do not worsen and to protect the assets that were not affected by the accident.

Is it possible to lose the right to compensation?

Yes. There are situations in which the insurer no longer has the obligation to the contractor. This normally occurs when the loss is clearly due to the fault or bad intention of the owner or beneficiary of the insurance, including through a fraudulent claim or in bad faith.

As a guarantee, the insured company must avoid providing any repairs or even replacement of the goods before the inspection takes place. This step is essential to establish the size and scope of the damage.

It is also recommended that the company does not abandon objects and other types of assets: they need to be properly protected. If there is compensation, it will belong to the insurance company.

It happens with some frequency that the insurance company, after paying the compensation, goes to court to request compensation for losses from other companies or people, responsible or causing the accident, if applicable.

How long does it take to receive?

Payment for a claim normally takes up to 30 calendar days, which starts counting from the date on which the last required document is delivered. In case of reasonable doubt,  new documents can be requested and the deadline is frozen, only to be resumed after the requirements have been met.

The compensation amount is calculated based on the rule described in the policy, with an updated Broad National Consumer Price Index (IPCA). If deemed convenient, the insurance company may require official certificates or certificates, in addition to requesting the results of investigations, with the aim of establishing the real extent of the damage and the necessary compensation.

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