What Makes a Good Claim?
By Amy Bloore
When people talk about a good claim, they usually mean one that gets paid. That’s understandable, but it puts the emphasis in the wrong place. No one can promise an outcome, because every claim turns on its own facts and its own policy. What can be influenced, and influenced significantly, is how well a claim is prepared and managed.
A good claim, in that sense, is one that is reported early, supported by clear information and handled with realistic expectations. Claims like that tend to move faster, involve fewer disputes and produce fewer surprises. Having sat alongside clients through many of them, we can say the difference is rarely luck. It is groundwork.
Report it early
The single most useful habit is early notification. Policies require claims, and often circumstances that might lead to claims, to be reported promptly. Beyond the policy conditions, early reporting simply makes everything easier. Facts are fresh, evidence still exists, witnesses remember and there is time to take advice before positions harden.
Businesses sometimes delay reporting because they are unsure whether the incident will amount to anything, or because they hope to resolve it quietly. It is almost always better to notify and let the matter close quietly than to explain months later why nothing was said. If you are in doubt about whether something is worth reporting, that doubt is itself a good reason to make the call.
Get the facts straight
A claim moves at the speed of its information. What happened, when, where, who was involved and what was affected. These sound like simple questions, but under pressure they are often answered vaguely, and vague answers generate follow-up questions, and follow-up questions generate delay.
A short written account, prepared while events are fresh, is worth a great deal. Stick to what is known rather than what is assumed. If something is uncertain, say so. A clear and honest account that acknowledges gaps is far more useful than a confident one that later needs correcting.
Have the evidence on hand
Most of the evidence that decides a claim exists before the loss ever happens. Photos of premises, equipment and stock. Purchase records and asset lists. Contracts and certificates. Maintenance logs. When these records exist, a claim can be assessed on documents rather than reconstruction, and the difference in timeframe can be dramatic.
After an incident, add to the record straight away: photographs of the damage before anything is moved, copies of relevant correspondence and receipts for any urgent expenditure. It is much harder to gather evidence in reverse.
Take reasonable steps to limit the loss
Policyholders are expected to act as though they were uninsured, taking reasonable steps to prevent further damage. Arranging temporary repairs, securing the site or moving undamaged stock are all sensible and generally expected. Keep receipts, because reasonable mitigation costs often form part of the claim itself. What should be avoided is disposing of damaged property or authorising major permanent repairs before the insurer has had the opportunity to assess, unless safety demands it.
Communicate, and keep expectations realistic
Claims go better when communication is steady and honest in both directions. Respond to requests for information promptly, and if something will take time, say so. It also helps to understand early what the policy actually provides. Indemnity is designed to put you back in the position you were in, not a better one. Excesses apply, some items may be settled at market value rather than replacement and some elements of a loss may sit outside cover entirely. None of this is a reason for pessimism. It is simply better understood at the start of a claim than discovered at the end.
Where your broker fits in
You do not have to manage any of this alone. Part of our role at Sage is advocacy: preparing the claim properly, presenting it in the way insurers need to see it, pressing for progress when things slow down and having the difficult conversations when a position needs to be challenged. A well prepared claim gives us the best possible material to work with.
If you want to test how ready your business would be, ask one question: if something happened tomorrow, how much of the evidence described above already exists? Whatever the answer reveals is worth an hour of attention now. It is the cheapest claims preparation you will ever do.
This article is general information only and does not take into account your objectives, financial situation or needs. Please speak with your broker about your specific circumstances.
