10 ways to stop your insurance claim from being rejected

Running a business means juggling a lot – and when something goes wrong, you need your insurance claim to be straightforward. But claims don’t always go to plan. A denied or reduced claim can be stressful and expensive – but with the right steps, it’s often avoidable.

The good news? Taking a few precautionary steps can help reduce the risk of issues during the claims process.

At Everywhen, we’ll stand by your side with a genuine desire to make the process as smooth as possible. That’s why we’ve pulled together ten tips to help your claim start off on the right foot.

Underinsurance is a common reason that claims fail. If your valuations aren’t up to date, your insurer may only pay part of your claim – or they might even decline it altogether.

To avoid problems, review the rebuild cost of your buildings and value of your contents regularly, especially after renovations. Ensure you accurately record turnover, too. Once you’ve reviewed your figures, make sure your policy reflects them too.

When you take out your policy, you need to disclose all relevant information. That includes previous claims (even if rejected), County Court Judgements (CCJs), adverse directorships, criminal records and any past insolvencies. If you don’t, your insurer may deny your claim.

It’s also important to get into the habit of keeping your insurer updated if your situation changes. Waiting until renewal to inform your insurer about something they’d want to know could cause problems later.

Even a small omission can result in an insurer denying your claim. If you’re unsure about whether something matters, go ahead and share it anyway. It’s better to err on the side of sharing irrelevant information than risk losing cover when you need it most.

After you’ve made a claim, your insurer will usually ask a loss adjuster to assess the damage and repairs. But there’s nothing to say you can’t select an independent loss assessor to represent you. It’s worth considering if you want extra support during the claims process – if you’re struggling to find one, speak to your advisor.

Business interruption cover isn’t one-size-fits-all. It’ll vary based on the size and nature of your business. Speak to your broker to determine a realistic indemnity period for your business if you run into issues. They’ll help to tailor a policy to suit your specific requirements, which could include things like increased costs of working to ensure you are able to continue working after a disruptive event.

You need to have a genuine financial stake in what you’re insuring. For example, you can’t insure a business that you don’t legally own or have a financial interest in. If you don’t, your claim won’t be valid.

Your policy lists exactly what you need to meet for a claim to be successful. Pay close attention to anything marked as ‘condition precedent’ – these are rules you must follow for your policy to stay valid. Mike Glanton, Head of Claims at Everywhen, says “one of the most common pitfalls is making offers of settlement or admissions of liability to a third party: this could lead to your insurer refusing to settle part or all of the claim”.

Without supporting documentation, it’ll be very difficult to make your claim. Make sure to keep things like receipts, witness statements and take photographs of the damage. The more evidence you can provide to your insurer, the stronger your claim will be. Do not dispose of damaged goods until insurers have confirmed they don’t want to inspect them.

Every policy will have a claims procedure. When you take out the policy, make sure that you know exactly what to do if something goes wrong (if you’re in the middle of policy term, and you’re unsure, speak to your insurer or broker).

Usually, you’ll need to report the incident promptly, gather all the evidence, complete the claims form and cooperate fully with your insurer.

It may sound obvious, but if your insurer can’t reach you, then it can derail your claim. Make sure that your contact details are up to date, including your phone number, email address and physical address.

At Everywhen, we’re here to support you from the moment you take out your policy with us. If you have any questions or need help submitting a claim, visit our claims hub here.

Consistent with our policy when giving comments and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems, we recommend that professional advice be sought.