Make a list of the items that were damaged or destroyed. Where possible, give your insurer the equipment model, proof of purchase, warranties and price paid. Videotape or take photos of the damage.

Settling a business insurance claim: the 5 key stages*

  1. Emergency repairs are made to stop damage from getting worse.

  2. Plans are drawn up to repair and rebuild the damaged premises.

  3. A list of damaged, destroyed or stolen property is drawn up.

  4. Items are cleaned, repaired or replaced depending on the type and condition, (as per the coverage chosen when you purchased your home insurance policy).

  5. The rooms of the premises are rebuilt.

* These stages may vary from disaster to disaster or from insurer to insurer; they’re provided for information purposes only.   

 

Replacing destroyed or damaged items

First, your insurer will have items cleaned if they can be cleaned and repair damaged items that can be repaired.

If items must be replaced, your insurer will replace them with new items of the same type and quality if you chose this settlement option when you purchased your policy. If not, your insurer will indemnify you based on their actual cash value.

Repairing the damages

Don't forget about the deductible!

You will have to deduct from the amount for the damages the amount of the deductible stipulated in your insurance policy.

If your building is damaged, a plan will have to be drawn up to evaluate the cost of rebuilding the damaged premises. Your insurer will have the damaged portions repaired or rebuilt. If you opt not to have your premises repaired, your insurer will reimburse you an amount of money based on its actual cash value, considering the depreciation of the item.

Choosing a supplier or contractor

You can use a supplier or contractor of your choice to repair or replace an item, or rebuild the damaged premises. However, discuss it first with your insurer so that you can agree on the indemnity amounts.

Suffered a major loss?

Make sure to follow the claims settlement process to make sure that the coverage you purchased is used as you wish. Especially if this amount is less than the cost of all the damages incurred. You are the one who decides how this amount will be used.

Did you know that the costs of cleaning or storing items, or for clearing the premises, are paid out of the insurance settlement?

Your insurer’s obligation

Your insurer is required to return your business premises and its belongings to the state they were in prior to the loss. Your insurer must repair or replace the items and/or the part of the building that were damaged.

Your insurer also has to pay you for the damage within 60 days of receiving your claim or any information or supporting documents it may request.

The claims adjuster will contact you

What not to do with claims

Don't be tempted to claim items the business never owned or exaggerate the value of those it did. Your business could lose its indemnity. And it will have a lot of difficulty getting reinsured.

The adjuster will investigate the circumstances of the loss. He’ll explain the process to follow, depending on the nature of the damages suffered and your insurance coverage.

If the damage is major and is covered, the adjuster will rapidly send a team specialized in cleaning up after a disaster and will coordinate the work to empty and clean the damaged premises.

Business tips

Using your personal vehicle for work

Why your insurer needs to know if you use your vehicle for work.