Most Common Business Insurance Claims
Pop Quiz! What are the most common business insurance claims? Is your business prepared to address these claims when they occur?
If you are unsure of these answers—or want a refresher—we hope this article can help! Whether you run a fast-growing business or are just starting, these business insurance claims could appear on your doorstep, and we believe preparation is essential.
Theft and Burglary
Did you know that employee theft accounts for 42.7% of Inventory loss in US stores? We are not introducing this statistic to cause alarm; instead, awareness is essential.
Employee theft is preventable, and we will cover this topic in greater detail in a future article! For now, the primary recommendations are to perform background checks, invest in a surveillance system, and build a relationship with your team.
As to burglary, a security system and a well-lit business could reduce break-ins.
Water Damage
No matter the season, water damage could occur. Rain, snow, and freezing temperatures are all leading contenders for damage, but burst pipes could also happen for several reasons.
One great way to mitigate damage from a burst pipe is by training a staff member to shut off the building’s water. Does someone in your building know the water shutoff valve location? Rectify this situation before a plumbing emergency occurs.
You may consider implementing a commercial plumbing inspection schedule to catch any potential issues early.
Is water damage generally covered under commercial property insurance? Well, yes and no. In most instances, commercial property insurance usually covers water damage from snow, freezing temperatures, and burst pipes. However, you will need a separate policy to cover flood damage.
Were you interested in taking a closer look at water damage distinctions? Our article here examines the differences between flooding and water backups. It does focus primarily on homeowners’ insurance coverage options, but you might learn something useful!
Before moving on to the next common business insurance claim, here is one last note. If your business needs to close due to water damage, your business income insurance policy could reimburse damages.
Wind and Hail Damage
High winds and hail cannot be tamed, but they do not have to control your business. In this situation, forward-thinking is critical.
Is your business located near trees? Trim overhanging branches and watch out for dead or dying trees. A dead tree has a weaker root system and is at increased risk of falling.
Does your business utilize outdoor equipment? Consider storage methods that anchor it in place when not in use. The last thing your business needs is a windstorm throwing heavy machinery into your building.
Fire Damage
According to the National Fire Prevention Association (NFPA), a fire occurs in a structure at the rate of one every 64 seconds.
Does your business have a fire safety checklist? Create one today! Implement an emergency exit plan and regularly practice the route with your employees.
A fire suppression system could also protect your employees and your property. Interested in learning about fire suppression system benefits? Check out our article here.
Customers Slipping, Tripping, and Falling
Accidents occur when you least expect them, so stay vigilant of your surroundings while at your business.
Instruct employees to clean spills immediately. It would be best if you also considered investing in proper wet floor signage.
Always organize and secure electrical cords so they do not become a tripping hazard. Keep your workspace clutter-free.
We hope learning about these top business insurance claims will give you the tools you need to reduce future claims. Are you interested in reevaluating your business insurance options? Our team would be happy to help!
