Tips for handling claims

Settling an insurance claim swiftly and easily is in everyone’s best interests, but isn’t always possible – here are some tips to help you come claim time

Service, policy coverage and price are important factors for most people when choosing an insurance provider, but making a claim is when the rubber really hits the road. In our experience, most insurers genuinely want to settle claims fairly according to their policy terms, and the vast majority are. However, dissatisfaction can arise when:

1. A claim is particularly complicated, such as in an unusual situation where the process can take time and cover may come down to interpretation. This happens more frequently with liability claims.
2. The client has misunderstood the extent of their cover because they have not read the policy or have assumed cover that is not provided.
3. There is poor communication during the claim handling process.

Below are some tips to help ensure your claim is settled as swiftly and satisfactorily as possible.

All claims

• Read and understand your policy – what it covers and what it doesn’t.
• Notify your insurer of a potential claim immediately.
• Complete and return the claim form quickly and in full.
• Don’t admit liability (even if it may seem obvious). Your policy says you must not do this, as it may jeopardise your insurer’s ability to defend a claim. Doing so could result in your claim being declined.

Commercial vehicle claims

Get your sum insured as accurate as possible when you take out or renew the policy. This includes the value of signwriting and other accessories.

Most policies insure the vehicle for its market value, so getting this right means you’re paying the right premium and will avoid arguments and delays over this at claim time.

If stolen or broken into:

• You’ll need a police report.

If involved in an accident:

• Get a photo of the other driver with their vehicle. Your insurer will try to recover your excess from the other party if they were at fault. Photographic evidence will help ensure they can’t wriggle out of it (this is happening more and more).
• Take your vehicle to a repairer approved by your insurer. This is not required, but may make the claim process easier.

If it’s a windscreen:

• Take it to an approved windscreen repair/replace company. You may want to ring ahead with the vehicle’s VIN number to ensure they have the right replacement part in stock.
• Give them your policy number.

There is usually no excess or claim form required.

Tools claims

Insure the full value of all your tools, not just the proportion of the total that may be in your van or out on site. Doing so could mean your insurer only pays an equivalent portion of any claim.

If stolen, you will need:

• A police report.
• A quote to replace the stolen items.
• Evidence of ownership of the items, ideally an asset register.

An asset register should contain an item description, when and where it was purchased, cost and a serial number.

There are a number of tools available to help you create and keep this up to date, including phone apps, spreadsheets and the Police’s online asset list snap.org.nz.

Receipts are another way to prove ownership, as are photos.

If damaged, you will need:

• A repair quote, or if it can’t be repaired confirmation of that and a quote to replace it

Liability

A liability policy is not about refunding your costs, it is about reimbursing other parties for their losses that you’re responsible for. Bear this in mind if you’re tempted to repair or pay for things yourself before involving your insurer.

These claims can be, and often are, complicated and consequently take time to sort out. If your client has damaged (or lost) property they are advised to make a claim on their house and/or contents insurance, as this is likely to be settled more quickly.

Their insurer will then seek to recover their costs, including their client’s excess, from you. Cooperate fully and promptly with an assessor if one is appointed, as no decision will be made before their report is completed and reviewed by the insurer.

Include with your claim form:

• Written correspondence from the other party – often referred to as the ‘third party’ – holding you liable for their loss. This is the key to a liability claim.
• Quotes/estimates of the cost to repair the damage/reimburse the loss.
• Photos and/or other evidence of the event, such as witness statements, expert reports etc.

There is never any guarantee that an individual claim will be accepted, because there are so many unique factors involved. However, by following these tips you will at least improve the likelihood of a swift and satisfactory outcome should you need to make one.

Builtin Insurance are New Zealand’s trade insurance experts. For more information visit builtininsurance.co.nz or contact Ben Rickard at ben@builtin.co.nz or 0800 BUILTIN.