How to File a Small Business Insurance Claim
Business claims have higher dollar values and more scrutiny. Don't guess — call your agent before saying anything to the insurer.
Step-by-step
- 1. Stop the bleeding
Mitigate further loss. Document time, materials, and costs.
- 2. Notify your agent first
Their job is to advocate for you. They'll help frame the claim correctly.
- 3. Document with overkill
Photos, video, receipts, sales records, payroll. For business interruption, you need pre-loss financials to prove the gap.
- 4. Cooperate but don't volunteer
Answer what's asked, in writing where possible. Don't speculate about cause or extent.
- 5. Bring in a public adjuster for losses over $50k
Public adjusters work for you, not the insurer. They typically take 10% but recover 30–50% more on average.
Common pitfalls
- Underinsuring building or contents — coinsurance penalties can slash your payout.
- Missing business interruption deadlines for ongoing-loss documentation.
- Letting the insurer's contractor scope the loss without your contractor present.
FAQ
Most policies require physical damage as the trigger. Pandemic exclusions are now standard post-2020.
Self-insured retention requires you to handle the claim up to the SIR amount. A deductible is paid back to the insurer who handles the whole claim.