Research has suggested that the majority of businesses that suffer a large insurance claim that led to production falling more than 80% failed after a year regardless of how good their insurance cover was.

The main reasoning behind this is thought to be that any money you claim in insurance may cover your buildings, your machinery and stock and even compensate any loss in profits, but it does not win back your customers good will that may be lost even if your company stops producing products after only a short amount of time.

The action you take will often effect the outcome of your insurance claim and whether or not your business’ future is successful. Therefore, the following is advice from Peter Satchel from the Federation of Small Business (FSB) and SmallBusiness.co.uk if you need help making a claim.

1) Plan Ahead – Draw up an action plan so you know where you are going with your business

2) Prove It! – More often than not insurance companies will want to check how your claim’s validity. If something like foodstuff has been damaged it may not be practical to keep the physical remains, so keep photographic records of items before you dispose of them. Many insurance companies also provide a service that specialised in the removal of such items, who also tend to check, so make sure you are certain of your inventory.

3) Get What’s Yours! – Insurers want to save money, but your main aim is to sae your business, so if you don’t like the compensation suggested, tell them! You are in charge and therefore have the right to argue.

4) Be Consequence Aware – As a retailer your insurer may suggest salvaging goods which you may not want to do. This may lead to you selling stock at reduced prices that you could have claimed on. It would be better if damaged stock is removed to a reputable salage dealer, de-labelled and sold outside your region.

5) You Want Independent Builders & Surveyors – If any building work is needed you want independent workers for this (which will be covered on most policies). These people will provide you with certification at the end of the procedure which ensures the value of the building is maintained.

6) Don’t Forget To Run Your Business – If you must, get a professional in to deal with your claims and save your time that would be better spent elsewhere. It may even get you more money in the long run!

7) Inform Your Customers – This is essential. If your clientele think that you are breaking your promise or lying to them, they aren’t going to return once you get things up and running again.

What Do You Think?

Do you have any more advice for people that are claiming insurance? Have you had any bad experiences people should be aware of? Leave your comments here.

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