5 Common Business Insurance Claims & How To Avoid Them

Business Insurance Claims are a part and parcel of the process of running a business. Any business, no matter the scale or type is exposed to potential risks at all levels. Managing these claims can sometimes be tricky and time-consuming. However, if you are more vigilant, organized and careful some common claims can be avoided.
Below, we list 7 such common claims that businesses face but can be avoided.

Claim 1
Property damage claims due to theft or burglary
Nearly 20% of property damage claims are caused due to theft and burglary attacks. Some safety precautions can help you avoid falling in such situations.
How to avoid it:
Burglarproof your business property with devices like high-tech locks, CCTV cameras, burglar alarms, etc.

Claim 2
Business income damage due to employee dishonesty
This generally happens at grocery stores, restaurants or even in bigger business establishments. Since the data is easily accessible to some employees, the fear of it being misused or compromised is constant. However, some simple processes can help you reduce such risks.
How to avoid it:
Make sure passwords are monitored, install 2-3 tier security systems for confidential files. Keep a constant check on the login and logout activities of the employees. Proper surveillance and activity logging of all employees will keep you away from such claims or damages.

Claim 3
Slip, fall, & trip claim
Annually about 62% of grocery stores, gas stations, restaurants, and even hotels are charged with liability claims caused due to slip, fall, or trips of visitors/guests. Now, this seems pretty avoidable. Let’s see how.
How to avoid it:
Make sure your property is free of slip-and-fall hazards. Fix alarming faults like loose steps, hand railings, slick floors, and clutter. Put up signs to warn visitors/guests of hazardous conditions – such as wet floor signs, watch your step signs or mind your head signs.

Claim 4
Water & freezing damage
Property damage caused by water leaks or frozen water are the most common complaints across the country. These claims generally involve damage in roofs from snow or water damage caused by frozen pipes bursting suddenly. These can be avoided too, with a little bit of extra care.
How to avoid it:
Simple activities conducted from time to time can keep you miles away from such claims. Ensure your roof is clean and clear of debris that may accumulate water. Keep a close eye on your plumbing and make repairs if needed. Keep your pipes insulated and save them from freezing.

Claim 5
Product liability claims
If your business is the manufacturing of consumer products like food products, skincare, electronic devices, etc. then you are liable to pay for any harm caused to the consumer due to your products.
How to avoid it:
The process of manufacturing has to have a strong quality control process. Stringent testing practices should be followed at every step of production. These can help reduce your chances of getting a product liability claim. These are some common claims that can be avoided by being extra careful. For everything else, you can rely on our business insurance plans that provide extensive coverage.

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