With the Coronavirus pandemic shutting down businesses, many policyholders are now putting in insurance claims based on business interruptions. There are many things that the insured and the insurer should do as the claims start to come in. Among them are the following:
- Disclaimer of pre-notice losses: Insurance companies already know they’re about to lose a lot. So, before the notice goes out, they should disclaim the losses despite agreeing to cover the losses in their policies which creates a discount in the coverage.
- File your claims on time: Many states unless they have created a grace period, will deny a claim if it comes in late. Filing early allows for more expedited processing. Even if its incorrect in its filing, there will still be time to fix it before a given deadline.
- Everyone is doing it: Everyone has to go through this and no one can ignore the impending crisis in the insurance industry.[1]
COVID-19 is considered damaging despite many insurance coverages saying otherwise. It's currently disrupting how people operate as a business. Consider what your state says in denying coverage to their premiums and paying out claims.
[1] https://irletter.com/april-is-email-your-insurance-broker-month/