What is a business insurance claim?
- Damage or loss to property or stock
- Loss of profits
- Liability risks involving the public or your employees
Business insurance is designed to protect your business from financial harm caused by events like a fire, flooding, an accident or government mandated closures. Your insurer protects you by giving you financial compensation for losses that are covered under the terms of your insurance policy.
Before you lodge a business insurance claim, it’s important to first review the terms of your policy to make sure that the details of your claim are indeed covered. And remember, fine print in the terms and conditions vary between insurers and policies, so it’s important to thoroughly read through your specific policy before making a claim.
An experienced Maurice Blackburn business insurance lawyer can guide you through each step of the claim process by:
- Advising you on whether you have a valid claim
- Finding and explaining the losses your policy covers, benefits it provides, and any exclusions that apply
- Ensuring you follow your insurer’s strict claim requirements and meet any time limits
After you lodge your claim and fill out any documents from your insurer, a dedicated claims service representative will review your claim and determine if your loss qualifies for compensation. If it does, they will provide you with a set amount of funds.
Types of business insurance claims
The main areas of business insurance claims include:
- Property damage
- Business interruption
- Bodily injury
- Disability (workers’ compensation)
- Stock loss or damage
- Accounting expenses
- Consequential loses
What is a business interruption claim?
If your entire business has had to close or relocate because of fire damage or government health restrictions for example, a business interruption claim can help your business stay afloat by securing funds to cover ongoing costs while you recover and rebuild.
If you are having trouble with your insurer in relation to a business interruption claim, our team of experienced business interruption lawyers can review your claim and do everything in our power to obtain the compensation you deserve. Find out more on our recent blog, What you need to know about business interruption insurance, and it’s relation to COVID-19.
What does business interruption insurance cover?
Depending on the terms of your business interruption insurance policy, you might be covered for any or all of these losses:
- Lost sales while your business is out of action
- Extra costs incurred from staying open with limited clientele
- Ongoing expenses, such as your electricity bill, staff wages and rent
- Relocation costs for moving to a temporary location
- Training costs for any machinery you might have had to replace
- Closure of your business premises due to government orders
- Damage to one or more of your supplier’s premises
- Consequential losses caused by the insurers delay or mismanagement of your claim
Why Maurice Blackburn?
We understand how stressful and scary the thought of a rejected business insurance claim can be and we are here to give you peace of mind. Maurice Blackburn's business insurance lawyers are seasoned professionals in taking on well-resourced insurance companies. Our team has over 100 years of experience in Australia and we are prepared to fight for your rights and entitlements.
We even offer 'no win, no fee'* arrangements for these types of cases. This means that you don’t pay if we don't win. We have also have business insurance lawyers across Melbourne, Sydney, Brisbane, Perth, Adelaide, Darwin and throughout Australia.
Contact us today to receive a free business insurance claim check and find out how we can help.
Frequently Asked Questions
Yes, usually. However, some policies:
- Won't cover damage not caused by flames
- Might only cover smoke damage within a limited distance from a fire
Only if you have replacement cover. Some business insurance policies have fixed price cover which might not be enough, especially if your business has been undervalued in your policy.
Your insurer must notify you in writing when your next premium is due to renew your policy. If you don’t pay the next premium, your insurer must notify you if that causes your policy to lapse.
If your policy is a ‘consumer insurance contract’ entered into after on or after 5 April 2021, you have a duty to take reasonable care not to make a misrepresentation to an insurer when you take out or renew your insurance policy. That includes a duty to truthfully answer questions they ask.
Otherwise, you also have to tell the insurer anything that might be relevant to whether they will cover you. This is called a duty of disclosure. If you don't, your insurer might try not to deny your claim, although often with our help we can ensure you receive payment.
As soon as possible is best, but you might be able to claim even after a long time. We can advise you on whether you still have a valid claim.
Some insurers offer full flood insurance coverage for businesses, but if you want to make sure flood is covered under your policy you need to comb through the policy wording or ask a business insurance expert to check on your behalf.
The first step of a business insurance claim is notifying your insurer of your loss.
After you lodge a claim and fill out all the required documents, your insurer will review your claim and determine if your loss qualifies for compensation. If it does, they will provide you with a set amount of funds. If they deny your claim, don’t lose hope. We might still be able to make them compensate you.
Business interruption insurance is designed to cover any loss of income your business suffers after an unforeseen disastrous event like a fire, flood, accident or virus.
A business interruption claim can help your business stay afloat by securing funds to cover ongoing costs while you recover and rebuild. If the losses you are trying to claim are covered under your policy, your insurer is obliged to provide you with adequate compensation.
For your claim to be successful, make sure it references language in your policy that supports your claim. Consider asking an experienced business interruption lawyer to advise you on the best way to frame your particular claim.
Depending on your policy, there may be an "extra expense" portion of your business interruption coverage that could help you claim costs like additional rent and any extra utility costs at a new business location if they are higher than those at your original location.