Business Insurance Claim
What Is an Insurance Claim?
An insurance claim is a request by an individual or corporation to recover money, under an insurance policy, for a loss that the policy is designed to cover.
There are two main types of insurance claims: first-party claims, which are filed by the policyholder for their own loss (like property damage or theft), and third-party claims, which are filed by someone else who was affected by the policyholder’s actions (such as a customer injury or property damage claim).
How Do Insurance Claims Work?
Here’s a simple breakdown of how insurance claims work:
- Something happens. A loss, injury, or damage occurs.
- You report it. Contact your insurance provider as soon as possible.
- You provide proof. Include documents, witness statements, receipts, or photos that back up the claim.
- The insurer reviews. The carrier determines if your policy covers the loss.
- If approved, money is paid out. If approved, funds are issued to repair, replace, or compensate the party who experienced the loss.
When you file a claim with Insurance Canopy, our friendly agents reach out within two business days to confirm we’ve received it. From there, an adjuster will contact you to walk you through the next steps.
Learn more: Here’s a step-by-step guide for how to file an insurance claim, what to expect, reasons why a claim might be denied, and how to prevent claims in the first place.
Types of Business Insurance Claims (First-Party vs Third-Party)
- First-party claim: You file for your own loss (like for theft of your tools)
- Third-party claim: Someone else files because they were affected by your business (such as a customer injury)
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Here are examples of first- vs third-party claims:
- First-party claim: Your catering supplies and equipment are stolen from a locked van
- Third-party claim: A guest gets food poisoning and files a claim against your business
What Are Some Common Examples of Business Insurance Claims?
Some common business insurance claims include customers getting injured at your business or alleging you made a professional mistake. These are some example scenarios and the coverages that can help.
| Type of Claim | Example Scenario | Coverage That May Apply |
|---|---|---|
|
Customer Injury |
A client slips and falls at your office or booth |
General Liability |
|
Property Damage |
You accidentally damage a client’s floor while cleaning |
General Liability |
|
Stolen Equipment |
Tools or gear are stolen from your job site |
Inland Marine |
|
Product Liability |
A product you sold causes an allergic reaction or injury |
Product Liability |
|
Data Breach |
Customer data is stolen from your computer system |
Cyber Liability |
|
Professional Mistake |
A client claims you made an error that cost them money |
Professional Liability / E&O |
Type of Claim: Customer Injury
Example Scenario: A client slips and falls at your office or booth
Coverage That May Apply: General Liability
Type of Claim: Property Damage
Example Scenario: You accidentally damage a client’s floor while cleaning
Coverage That May Apply: General Liability
Type of Claim: Stolen Equipment
Example Scenario: Tools or gear are stolen from your job site
Coverage That May Apply: Inland Marine
Type of Claim: Product Liability
Example Scenario: A product you sold causes an allergic reaction or injury
Coverage That May Apply: Product Liability
Type of Claim: Data Breach
Example Scenario: Customer data is stolen from your computer system
Coverage That May Apply: Cyber Liability
Type of Claim: Professional Mistake
Example Scenario: A client claims you made an error that cost them money
Coverage That May Apply: Professional Liability / E&O
When Should You File a Claim?
File a claim as soon as possible after a covered loss or incident. Prompt reporting helps your insurer act fast and keeps your potential payout on track.
If the loss is smaller than your deductible or you can easily handle it out of pocket, it may make sense not to file. Have questions? Contact our customer support team — we’re here to guide you through the process.
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