By Don Sedlacek
Whether it’s a fire at your self-storage facility, a burglary, property damage, or a customer who has sustained an injury, no one wants to think about the types of situations that result in an insurance claim. However, such claims are an inevitable part of owning and operating a business. At some point, you’re going to have to make that call to your agent.
Events that result in the need to file a claim can be unpleasant, but the process itself doesn’t have to be. Making the necessary preparations and understanding the steps for filing can go a long way toward expediting the process and improving the eventual outcome. Here are three steps to follow.
1. Plan Ahead
How can you plan for the unexpected? While you can’t prepare for every possible incident, it’s vital to anticipate future claims. The most important preparation you can make is to understand precisely what your insurance policy covers. Schedule a review with your agent to go over each element. Ensure you understand the coverages and your policy reflects appropriate property values. Don’t be afraid to ask questions.
Take steps to ensure your employees receive emergency medical training to address injuries that may occur at the facility. This exercise should recur periodically, and it’s critical to maintain training records for each staff member.
Finally, assemble the information you may need to file a claim. Create a list containing:
- The names, addresses, phone numbers and policy numbers for each of your insurance policies
- Phone numbers for your employees
- Contact information for critical vendors
- Phone numbers for local police, medical facilities and emergency contacts
Keep a copy of this list at the storage facility and store another copy, along with copies of all your insurance policies, in a safe place offsite, such as a safety-deposit box or relative’s home.
In the aftermath of an earthquake, fire, storm or similar event, you may not be able to access the self-storage property. Documents might be damaged, or there may be a long-term power outage. If you’re facing the imminent threat of a severe storm or other potentially catastrophe, keep a copy of the contact list on your person so you can start the claims process as soon as possible.
2. Report the Claim
The biggest mistake policyholders make in the aftermath of a property loss or potential liability issue is failing to report the claim as soon as possible. Delays in reporting can result in many negative consequences for your business. The claim process may take longer to resolve because important evidence is no longer available for the claims adjuster to review and witnesses may be harder to locate after the event. In the case of onsite injuries and other liability claims, delaying the report to your agent—or, worse, attempting to resolve the situation on your own—could result in a bigger claim or a costly lawsuit.
In most cases, a claim can be reported to an insurance carrier by either the agent or the policyholder, but each should only be reported once. A good rule of thumb is to report the claim to your agent (if you have one) to capitalize on his experience in situations similar to yours. The claim report should include the following:
- Your business name, address and phone number
- The name and phone number of the person to be contacted by the insurance company
- All contact information for the insured and/or the insured’s representatives
- The insurance-policy number
- The date, time and location of the loss
- For property claims, a brief description of the damage, including which buildings are damaged and specific addresses for each
- For liability claims, a brief description of the incident (customer injury, slip-and-fall incident, lien-sale incident, etc.)
- The names and phone numbers of witnesses (if applicable)
3. Take Action
Once you’ve reported the claim to your agent, you’ll be contacted by a claims representative to arrange a property inspection and interview. In the meantime, you may wish to consider taking the following actions:
- Ensure your own safety as well as that of employees, passers-by, customers and the public at large. Don’t enter structures that are unsafe, and don’t allow others to enter them. Use yellow caution tape, traffic cones and signage to identify dangerous areas and alert employees and visitors to the hazard.
- In the case of property damage or a burglary, perform a physical inspection of the affected areas to identify perilous conditions. Notify the appropriate authorities immediately if you discover downed or impaired electrical power or gas lines. Make a list of damaged structures, damaged or missing items, and other details relevant to the claim.
- Document any damage or the scene of an injury with photos and video. It’s far wiser to take too many photos than not enough, so make a record of everything. Continue to take photos as emergency repairs are made.
- Encourage any witnesses to remain at the facility until they’ve spoken with police, fire or emergency officials.
- Take steps to protect the property from additional damage and protect any contents or personal property that may be exposed to the elements. Most insurance companies will cover reasonable and necessary emergency repairs to protect the property from further loss. Hold on to receipts for expenditures and keep detailed records of any emergency repair work and the name of the vendor that performed it.
- Keep damaged items until your claims representative grants permission for them to be discarded.
Filing an insurance claim and dealing with the situation that triggered it isn’t fun. However, heeding the guidelines outlined above may help to resolve the claim in a timely manner and contribute to a more positive outcome for your self-storage business.
Don Sedlacek is vice president of claims for Phoenix-based MiniCo Insurance Agency LLC, which provides specialty programs for self-storage businesses in Canada and the United States. For more information, call 800.528.1056; visit www.minico.com.
