Preparing a defendable loss claim

2 March 2021

Yes, your legal entitlements for recovery of loss may be blurred but what is always clear in any claim of business loss, preparation remains absolutely critical. The sooner preparation commences, the better.

Whether or not your business interruption claim will be covered under your policy will depend on the precise terms of your insurance cover and the circumstances and nature of the loss, which you claim.

Where do I start?

1 Read the policy carefully. What language is in your policy that might support the claim? How can the policyholder fashion a business interruption claim to make the strongest possible argument that it qualifies for coverage? Consult an independent adviser such as your accountant, lawyer or an insurance adviser to review your policy to see how best to frame your claim.

2 Pay close attention to deadlines and filing requirements. Often claims need to be submitted within a specific time frame, on a particular form and with specific accompanying information and documents. Make sure the insurer acknowledges receipt of your claim in writing, especially if your claim is lodged by an insurance broker or another advisor.

3 Plan ahead so that you can prove the amount of business lost due to COVID-19. This will require collecting and organising financial records, management reports and other information as detailed herein. Ideally, while memories and documentation are fresh. A successful insurance claim requires evidence of how much the policyholder actually lost.

We have prepared a Business Loss Insurance Claim Checklist for you to use when collating your evidence of loss when lodging with your insurer. It includes an overview of the detail that may be required to get you closer to a more successful outcome.

Download our Business Loss Insurance Claim Checklist

We’re ready to help.  If you have questions or need any further assistance please contact David Watt