Will Filing A Business Insurance Claim Impact Your Rates?

Will Filing A Business Insurance Claim Impact Your Rates

You invested in business insurance to gain a level of financial protection for your company. You wanted to be sure that, if something were to happen — such as a fire, storm or theft —there would be financial protection in place to help you keep your company’s doors open. But you may be worried that filing a claim in these situation could lead to higher rates.

Whether or not a business insurance claim will impact the rates you pay isn’t always a straightforward answer. There are plenty of concerns here. If you file multiple claims, you are in fact raising the level of risk the insurer sees in you — in their view, you are likely to file another. At the same time, if you don’t file a claim at all and need help suddenly, you are unlikely to see your rates jump immediately or at all. There are a few things to keep in mind:

  • The higher the number of insurance claims made to a policy, the more impact it will have and the more likely it will lead to a higher insurance cost to you. A high number of filed claims may even lead the insurance company to not renewing your policy.
  • If you are not at fault for the incident you’re filing the claim over — as is the case when you file after storm damage or a theft — then it is unlikely that your rates will change. On the other hand, if you are at fault — as might be the case if you offer a poor quality of service to a client, who then suffers damage — you can expect to see your rates climb.

With business insurance, there is a higher level of risk you face simply because you deal with more people. However, most businesses do not file too many claims over their lifetime.

You should not avoid filing a business claim if you need to do so. That’s what the policy is in place for. Still, you should keep in mind that filing too many claims (especially in a short period of time) can raise suspicion of fraud, and it may cause the insurer to take a closer look at what those claims are before approving them.

Get the coverage you need. Call Huntington Pacific Insurance Agency at (800) 878-4742 for more information on Huntington Beach CA business insurance.