Three business insurance claims tips

Making a claim on your insurance is not something anyone wants to do — but that’s what it’s there for; the mishaps, slips, trips or break-ins. By being prepared and gathering the right evidence upfront, you can help speed up the claims process and increase your chances of a successful outcome.

But, like anything steeped in so much history, insurance industry jargon is often not the most simple to understand. So, before making an insurance claim, it might help to have a little insider knowledge.

We believe that insurance doesn't need to be complex, so take a look at our top three tips below.

Insurer panels

Each insurer will likely have a panel requirement — this means that they will have specific, pre-approved service providers or professionals (known as the "panel") that policyholders need to use when making a claim.

These providers could include repair companies, legal firms or medical practitioners, depending on the type of insurance.

Say, for example, your shop window has been vandalised or a specialist piece of business-critical equipment has been damaged. Depending on your insurance, when you make a claim, you may have to use the insurer-approved panel to get the damage fixed.

Panels help the insurer manage costs and ensure that claims are handled by trusted, vetted professionals. On the downside, it may limit your choice of service providers.

Tip: Check your policy documents to see if your insurer has a panel requirement.

Claims-made vs claims-occurring policies

These types of policies — like directors’ and officers’ (D&O) and professional indemnity (PI) — usually cover professional negligence. D&O and PI policies are designed to defend the policyholder when a claim is brought against them, not for the policyholder to make a claim themselves.

There are two different types:

Firstly, a claims-made policy. This can provide cover if a claim is made against you during the period the policy is active, regardless of when the actual event happened.

In other words, the insurance will cover you as long as the claim is filed while the policy is in force, even if the incident that caused the claim happened years earlier.

Once the policy ends, however, you won't be covered for any new claims made after that, even if the event occurred when you were insured.

So, for example, let’s say you had a claims-made policy from 2018 to 2020. In 2024 someone makes a claim for something that happened in 2019. If you don't have an active claims-made policy in 2024, you wouldn't be covered, because the claim was made after the policy ended.

On the other hand, a claims-occurring policy covers you for incidents that happen during the time the policy is in force, no matter when the claim is made. Even if the policy is no longer active, you will still be covered for claims related to events that occurred while the policy was in place.

Say you had a claims-occurring policy from 2018 to 2020 and in 2024 someone makes a claim for something that happened in 2019. In this case, you'd still be covered, even if you no longer have that policy, because the event happened during the period when your policy was active.

Tip: When you’re buying a D&O or PI policy, consider whether you need to be covered forever or just for the duration of the policy. Your decision will largely be based on the type of job you do and the risks you feel comfortable with.

Considerations for every claim

While every scenario is different, there are some standard things you’ll need to share with your insurer for every claim you make.

We’ll always ask for:

• Your name
• Your company name
• Your policy number
• Whether you’re VAT registered

For claims involving theft, loss and accidental damage, you’ll always be asked to provide the make and model of the item, as well as proof of purchase.

Receipts help determine personal items from business ones and confirm what you paid. If it’s a specialist item — whether yours or that of a third party — we’ll usually ask that you send a web link to a like-for-like replacement.

If you’re facing any sort of legal action for injury claims or unfair dismissal, you’ll be asked to provide your solicitor's contact details and confirm if proceedings have been issued. You’ll also have to send over copies of all the correspondence exchanged to date with the plaintiff and your solicitor.

It’s important to note that in the early stages of any sort of legal claim, not to enter into conversations around liability.

Tip: Keep your business receipts! Get into the habit of taking photographs of every receipt when you purchase a key piece of kit and filing it away for safekeeping. You never know when you might need it.

You may also like:

• Business insurance jargon buster
• Tips for making a business insurance claim