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  • Saturday, September, 2020| Today's Market | Current Time: 02:50:51
  • Do you want to file an insurance claim for your trade business? If so, here is a guide that can help you take the right steps to receive your compensation.

     

    Your trade insurance plan can cover almost anything to protect you, your workers, your business, or any third party that suffers as a result of your trade activities. However, this depends on your trade insurance policy.

     

    For instance, your TradeRisk Electricians Insurance can protect your business from claims alleging property damage and bodily harm.

     

    When it comes to claiming your trade insurance, your insurer can reject your claim. And, at times, you may receive insufficient compensation. Usually, insurance claims get rejected because of the following reasons:

     

    • Providing false information to save money
    • Not completing documents on time
    • Failing to renew your trade insurance policy

     

    Luckily, there are small things you can avoid while claiming your insurance to ensure that you receive full compensation on time. These include:

     

    1. Failing to read your policy

    As mentioned earlier, different trade insurance policies cover different risks. To protect your trade business from losses, you need to understand your trade insurance policy. Whether your policy protects your business alone or your employees is vital when claiming your insurance.

     

    For example, you won’t claim insurance for a third-party if your insurance policy doesn’t cover this. You should also read the entire insurance contract, including endorsements. You can ask your broker or agent for assistance if you have trouble understanding your insurance contract.

     

    1. Failing to notify your insurer immediately

    In case any accident occurs that your trade insurance policy covers, notify your insurer immediately. Waiting too long can affect your claims process as your insurance may doubt the legitimacy of the incident and the severity of the damages.

     

    Furthermore, claims are easier to adjust when the evidence is fresh, and the event has just occurred. Most trade insurance companies have a timely notice for reporting any loss or claim. Hence, try and adhere to this timeline to avoid a breach of contract.

     

    1. Paying third-party claims out of pocket

    Trade businesses can be hazardous whether you’re working in the construction industry or as an electrician. Therefore, your workers can trip and fall while working on-site or get electrocuted.

     

    But, should you compensate your employees for their injuries instead of claiming your insurance? No, you shouldn’t. First, an injury that may seem minor at the time may escalate to a severe issue. Similarly, an injury may not become evident right away.

     

    Second, your trade insurance policy may prohibit voluntarily covering third-parties out-of-pocket to recover your payment later through a claim. To avoid violating your policy conditions, don’t mitigate third-party risks out of pocket.

     

    1. Admitting you were at-fault

    A common mistake that people make when claiming their insurance is admitting they were at fault. Unfortunately, this can harm your defense, increasing the likelihood of your insurer denying your claim. In case of any accidents at your work-place, don’t admit liability.

     

    Instead, speak to your insurer first, as the accident’s cause may be different from what you think. Additionally, some trade insurance liability policies prohibit you from assuming any obligation without consent from your insurer. Any admission of fault could be grounds for your insurer to deny coverage.

     

    1. Accepting “final payment” cheque

    Most tradespeople assume the claiming process is tedious and stressful, forcing them to accept a final payment cheque to settle the claim. However, your final payment cheque may not be sufficient enough to cover all your damages.

     

    While claiming your insurance isn’t a walk in the park, following the required guidelines can make the entire process smooth. Don’t rush when filing your trade insurance claim as you may not recover your losses and receive the appropriate compensation.

     

    1. Hiding facts

    Telling the truth about any damages or injuries is vital in ensuring your claim isn’t rejected. Hiding facts, for example, can render your policy invalid on the grounds of unclear information. Also, avoid exaggerating details when claiming your insurance to receive more compensation.

     

    Ultimately, consult with your insurance broker before claiming your insurance as they can advise you accordingly. Your best bet at receiving your full compensation is by avoiding the mistakes mentioned above.

     

    Autobiography

    Eric Reyes is a passionate thought leader having been featured in 50 distinguished online and offline platforms. His passion and knowledge in Finance and Business made him a sought after contributor providing valuable insights to his readers. You can find him reading a book and discussing current events in his spare time.

     

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