A commercial property loss can happen without warning. Whether a fire breaks out overnight, a storm damages the roof or a burst pipe floods the premises, the first 24 hours can significantly impact the outcome of an insurance claim.
Mistakes during this period, such as clearing up too soon, delaying notification or failing to document the damage properly, can slow settlement, reduce claim payments or, in some cases, jeopardise a claim payout.
Having a clear action plan can make the claims process smoother and help businesses minimise disruption following a loss.
Put Safety First
Before assessing any damage or contacting your insurer, make sure the premises are safe to enter. If the incident involves fire, structural damage, gas leaks or electrical hazards, contact the emergency services and wait until the property has been declared safe before allowing staff, contractors or insurance representatives to enter. Minimise the number of people who enter to help prevent further damages and reduce risk of injury and danger to others.
If the loss involves theft or vandalism, report it to the police immediately and obtain a crime reference number, as your insurer will normally require this when processing the claim.
Notify Your Insurer and Insurance Broker Promptly
Most commercial property insurance policies require policyholders to report a loss as soon as reasonably practicable. Prompt notification enables the insurer to investigate the incident, assess the damage and begin the claims process without unnecessary delay.
When contacting your insurer’s claims helpline, have your policy number, the date and time of the incident, and a brief factual description of what happened available. Avoid speculating about the cause or estimating repair costs until professionals have carried out an assessment.
After reporting the incident by telephone, you may like to follow up with written confirmation by email. This provides a clear record of when notification was given.
You should also contact your insurance broker, who can explain the next steps, identify all potentially relevant areas of cover and help resolve issues that arise during the claims process.
Once the claim has been registered, record the claim reference number. Keeping this information organised from the outset will make future communication much easier.
Document Everything Before Clean-up Begins
Careful documentation is one of the most important things you can do during the first 24 hours after a loss. Insurance claims are often determined by the quality of the evidence available, and cleaning up or carrying out repairs before the loss adjuster has inspected the damage may limit your ability to recover costs.
Take photographs and videos of all visible damage before moving or removing anything. This includes the exterior and interior of the building, equipment, stock, signage, structural damage and any standing water. Time-stamped digital images are particularly useful.
In addition:
- Preserve damaged property wherever possible. Do not dispose of damaged stock, equipment or building materials until the loss adjuster has inspected them. If items must be removed for health or safety reasons, photograph and record them first.
- Keep a written log of the incident, including when it occurred, the damage observed and every conversation with your insurer or broker.
- Gather any pre-loss documentation, such as photographs, CCTV footage or previous inspection reports, which can help demonstrate the property’s condition before the incident.
- Retain invoices, maintenance records, repair quotations and any other documents that may support your claim.
Take Reasonable Steps to Prevent Further Damage
Commercial property policies generally require policyholders to take reasonable steps to prevent additional damage following a loss. Failing to do so may affect the amount your insurer will pay if further damage could reasonably have been avoided.
Temporary protective measures might include covering a damaged roof with a tarpaulin, boarding up broken doors or windows, turning off water or gas supplies, or removing standing water.
These actions are intended to help protect the property rather than carry out permanent repairs. Avoid major reconstruction work or disposing of damaged materials until your insurer has had a reasonable opportunity to inspect the loss. If emergency work is required to make the premises safe, document conditions thoroughly beforehand and notify your insurer as soon as possible.
Keep all receipts for emergency mitigation expenses, as these costs are often recoverable under the policy when properly documented.
Record the Financial Impact
If the damage forces your business to close temporarily or operate at reduced capacity, business interruption cover may apply.
The maximum indemnity period specifies how long eligible losses may be covered following insured damage, subject to the terms and conditions of the policy. Review your policy wording or speak with your insurance broker to understand how this applies to your circumstances.
Begin recording the financial impact immediately. This can include cancelled orders, lost revenue, employees unable to work, and additional costs incurred to keep the business operating or relocate temporarily.
Gather recent financial records, including turnover figures and payroll information, to establish your normal trading position. These records can help support a business interruption claim.
Conclusion
The actions taken during the first 24 hours following a commercial property loss can significantly influence the outcome of an insurance claim. Securing the premises, notifying your insurer promptly, documenting the damage thoroughly and taking sensible steps to prevent further loss are not only good practice but are also important policy obligations that help protect your right to a fair settlement.
Contact us today for a no-obligation insurance review of your policy or property insurance requirements. Call us on 01270 449449 or complete our contact form and we’ll be in touch with you as soon as possible.