If I File a Claim, Will my Coverage Go Down?

You have business liability in place to protect your business against the many risks it faces when operating each day. When the day comes where you find yourself filing a claim, you may wonder what the effects will be by doing so. You may want to be sure of what will happen in this situation when shopping for coverage as some insurance companies approach the after effects of filing a business liability insurance claim differently.

What to Expect after Filing

The fortunate thing is you had the liability coverage in place when the accident or situation causing you to file a claim arose. The cost of handling the situation without coverage would undoubtedly have been much more in the way of money and time. But, as money and time are always of great importance to business owners, you do not want to find that filing the claim or other new employee forms has reduced your coverage or raised your premium.

The choice to file a claim for your business is often the same as if you were deciding whether to file a claim to your personal auto which was involved in a minor accident. Usually, if the cost to repair a slightly dented bumper is far less than your deductible it makes sense to avoid filing an insurance claim altogether and deal with the matter on your own. The same thing can happen when you go to decide to file a claim on your business liability insurance.

If an employee has injured themselves while working in your company office, think twice before jumping to contact your agent to inform them of the incident. If the injury is something minor and they can continue working after bandaging a cut, then obviously there is not really any need to involve your insurance company. You want to be careful and ask your agent if you are ever in doubt as to whether a need for filing a claim exists after someone has been injured at the workplace.

Many times, if you can demonstrate to your insurer that you have a safety program or some kind of training in place to help keep the more serious injuries from occurring at the workplace, it will help your initial rates stay low for continuous levels of coverage. It is also a deterrent for employees to try and create accidents for themselves which they hope will lead to your worker's compensation insurance paying out for their benefit. Again, whenever there is a concern do not hesitate to contact your agent.

If you have doubts as to what the repercussions of filing a claim may be, you can always ask your agent directly. The insurers want to pay only when absolutely necessary, too, in order to keep rates down for all. It is often when something of a larger scale occurs and the damage is significant that you will not want to debate at all whether or not to file an insurance claim. If, for instance, your retail shop was destroyed partially by fire, it is imperative to file a claim.

Understanding Claims and your Policy

If you look through your existing policy it will tell you what circumstances would cause them, if necessary, to raise your premiums after filing a claim. It would also tell you if your coverage following the filing of your claim would be reduced. You may also always want to remember when renewing or purchasing additional coverage to discuss whether filing a claim could ever cause your coverage to go down.

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