The #1 small business insurance claims tip
The most important thing to remember about filing insurance claims is: When in doubt, reach out.
If you’re ever unsure whether something should be reported, err on the side of caution: Tell us anyway.
We’re here so you don’t have to handle the unexpected alone.
Log in to your NEXT account [link] or contact our claims team today. We’re ready to help.
When to file an insurance claim — and why
The point of insurance is to give you peace of mind. But it only works if you use it.
Here are some of the main reasons why you should report your claim as soon as possible:
1. Prevent small issues from becoming big problems
Imagine a minor incident that may seem insignificant at first, like a customer slipping and falling on a wet floor or a client claiming that the work you delivered per your consulting contract didn’t deliver the promised results.
Even if the incident doesn’t require costly medical attention or may not seem important, our claims advocates can check in with the customer, confirm the details and create a written record so there are no unexpected surprises.
But without prompt reporting, this seemingly small issue can escalate into a costly lawsuit if left unaddressed.
Early reporting allows us to help you proactively resolve the issue before it grows into a major business disruption.
2. Preserve critical evidence
Reporting early ensures that any important evidence — such as surveillance footage, photographs or witness statements — is collected while the incident is still fresh. Delaying your claim can result in lost or degraded evidence, which can weaken your defense if the accident escalates to a lawsuit.
3. Facilitate thorough investigations
The sooner we know about a potential claim, the sooner we can investigate and gather crucial information, including assessing third-party responsibilities and identifying potential fraud.
4. Accelerate claim processing and payments
Also, the sooner a claim is reported, the faster the processing and potential reimbursement. Prompt reporting enables us to initiate the claims process immediately, which can lead to more timely compensation for any covered expenses or damages.
5. Comply with legal and policy requirements
It’s not just smart to report claims early; it’s a condition of your policy.
6. Avoid unnecessary lawsuits and protect your legal standing
In many cases, early intervention, professional communication and swift action from our claims team can help prevent a third party from pursuing a lawsuit. And, in the case that a claim does turn into a lawsuit, early action can strengthen your position, giving you the best chance for a favorable outcome.
7. Minimize financial impact
Delays in reporting can limit the effectiveness of your defense.
8. Reduce the risk of a claim being denied
Timely reporting reduces the likelihood of claim denial due to late notification. By informing us promptly, you ensure that your policy conditions are met and preserve your right to coverage.
9. Protect your business reputation
Proactive and professional claims handling helps demonstrate your commitment to resolving issues responsibly. This can significantly safeguard your business’s reputation and relationships. Customers and partners are more likely to trust and want to continue doing business with companies that handle issues transparently and efficiently.
10. Provide peace of mind
Knowing you’ve taken immediate action to address a potential issue can alleviate stress and uncertainty and free up mental space. With NEXT actively working to protect your interests, you can focus on running your business.
What can happen if you wait to file a claim
If you wait too long to file a claim, a small incident can snowball into a big problem.
Waiting too long to report a potential claim can:
- Delay or complicate your defense if you’re sued.
- Weaken your legal defense if you don’t have essential evidence to support your case.
- Make it harder to defend your claim.
- Lead to higher out-of-pocket expenses if small problems grow unchecked.
- Result in a claim denial if you miss policy deadlines.
- Spiral into a big, expensive court battle due to lack of early documentation.
- Jeopardize your coverage for noncompliance with policy conditions.
- Put your business reputation at risk if things escalate unexpectedly.
Reporting early is the best way to protect yourself — and it’s easy. Check out these seven small business insurance claim tips.
