5 reasons why insurance claims don’t get paid

You expect the insurance policy you’ve paid for to pay out when the worst happens – after all that’s what it’s designed to do, right?

The sad truth is, it doesn’t take much to invalidate the average insurance policy. The good news is some of the most frequent reasons why claims aren’t paid are easy to avoid.

Key takeaways

How to make sure your insurance policy delivers on its promise in the event of a claim:

• Keep your cover up to date
• Understand your policy terms and conditions
• Avoid being underinsured
• Have an insurance adviser you can rely on to support you throughout the claims process

Making a claim on your insurance policy usually means that something has gone wrong, or an unexpected event has occurred. It is often a stressful time and being told that your claim can’t be accepted can be devastating – financially and emotionally.

Here are 5 of the most frequent reasons insurance claims aren’t paid:

1. Failing to report claims and incidents promptly. You must notify your insurance provider of a claim as soon as possible – ideally immediately after the accident/event has occurred.
2. Failing to advise your broker/ insurer of changes. This can include a change to the size and/or structure of your business, the work/service you carry out, number of employees, modifications to properties and the purchase of new equipment/machinery.
3. Neglecting to comply with warranties, conditions and endorsements. It can often be about the small print. Make sure you understand the cover you have and any terms, conditions and exclusions that apply. Your insurance adviser should go through this with you and explain any confusing terminology. If they don’t, just ask.
4. Underinsurance. Not having the right amount of cover can you leave you out of pocket in the event of a claim due to the Average Clause. According to RebuildCostAssessment, 79% of commercial properties and 70% of residential properties are uninsured. And it’s not just property – if you’ve replaced old machinery or equipment with new items, are your sums insured up to date? For private clients, jewellery and watches have increased significantly in value over recent years – has your cover kept up?
5. Admitting fault or liability. Never admit blame or liability without your insurance provider’s approval. Leave handling a claim to the experts and take immediate advice from your insurance adviser before making any acceptance of fault or offer to settle a claim.

When the worst happens and the thing you thought ‘will never happen’ does, there is almost nothing more important than the strength of the claims team behind you.

How can you ensure your claim gets paid and that your insurance policy delivers on its promise when you need it to?

From our perspective, the answer quite simply relies on partnering with the right insurance adviser, who takes a holistic approach to protecting you and your business.

No two individuals or businesses are the same, which is why we focus on protecting risks based on what we learn about you or your business and what we know is happening in your industry. Only then can we recommend a risk management approach that helps prevent claims, whilst protecting you, your business and your people when you need it most.

The Partners& dedicated claims team will support you through the entire claims process, from first notification of loss to the claim settlement. We are quick to respond and ready to represent your best interests, fully and fairly.

Whether it’s a straightforward settlement or helping to build a robust defence, we are committed to working shoulder to shoulder with you to achieve an outcome that’s right for you.

Find out more about how our claims team can support you today here.

For more from Partners& read the Autumn Magazine here:

Partners& Magazine Autumn 2024 | Partners&