Making a business insurance claim

Step-by-step guide to making a business insurance claim, from immediate actions in the first 24 hours through to working with loss adjusters, understanding your rights under the Insurance Act 2015, and what to do if your claim is rejected.

Guide summary

If your business suffers damage or loss, act quickly to secure the area, call your insurer within 24 hours, and gather evidence. Keep damaged items until inspected and complete the claim form accurately to avoid rejection.

  • Make the area safe and call emergency services if needed
  • Notify your insurer within 24 hours with your policy number
  • Take photos and videos of damage before cleaning up
  • Report theft or vandalism to police for a crime reference number
  • Keep damaged items until inspected by your insurer
  • Complete the claim form accurately — do not exaggerate
  • Cooperate with the loss adjuster but know they work for the insurer
  • Challenge the settlement offer if you disagree with deductions
  • If rejected, use the insurer's complaints process then the Financial Ombudsman
  • Do not admit liability or authorise repairs without insurer consent
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Related guides in Premises & Operations

If your business suffers a loss or damage covered by insurance, how you handle the first hours and days can significantly affect whether your claim succeeds and how much you receive. This guide walks you through the process from the moment an incident occurs.

Immediate actions: the first 24 hours

What you do straight after an incident matters. Insurers expect you to act reasonably to limit the damage and preserve evidence.

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    1. Make the area safe

    Secure your premises to prevent further damage or loss. If there is a risk to life, call the emergency services on 999. Turn off water, gas, or electricity if it is safe to do so. Do not attempt repairs beyond what is necessary to prevent further damage.

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    2. Call your insurer's claims line

    Notify your insurer as soon as possible, ideally within 24 hours. Have your policy number ready. You will be given a claim reference number — keep this safe, as you will need it for all future correspondence. Most policies require notification within 30 days, but earlier is always better.

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    3. Start gathering evidence

    Take photographs and video of the damage from multiple angles before any clean-up. Download CCTV footage if available. Collect contact details for any witnesses. Note the date, time, and circumstances of the incident while they are fresh in your memory.

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    4. Report to relevant authorities

    Report theft or vandalism to the police and obtain a crime reference number. Report fires to the fire service. If an employee was injured, follow your accident reporting obligations under RIDDOR. Your insurer may require these reference numbers.

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    5. Keep damaged items

    Do not dispose of damaged stock, equipment, or materials until your insurer or their loss adjuster has had the opportunity to inspect them. If you must move items for safety, photograph them in their original position first.

The claims process

After notifying your insurer, the formal claims process begins. The steps and timescales depend on the size and complexity of your claim.

Working with loss adjusters and loss assessors

For claims above a few thousand pounds, your insurer will usually appoint a loss adjuster to visit your premises and assess the claim. It is important to understand that the loss adjuster works for the insurer, not for you. They will investigate the cause of the loss, assess the damage, and recommend a settlement figure to the insurer.

You have the right to appoint your own loss assessor to represent your interests. A loss assessor works for you and can help prepare your claim, negotiate with the insurer's loss adjuster, and ensure you receive a fair settlement. Loss assessors typically charge a percentage of the final settlement amount, usually between 5% and 10%.

Tips for working with loss adjusters

  • Be cooperative and provide access to your premises promptly
  • Have your documentation organised and ready — invoices, receipts, valuations, and business records
  • Answer questions honestly but do not volunteer information that was not asked for
  • Take notes during meetings and follow up any verbal agreements in writing
  • Ask for interim payments if you need cash flow to keep your business running while the claim is assessed

Your rights under the Insurance Act 2015

The Insurance Act 2015 and the Enterprise Act 2016 give businesses important rights when making claims.

Under section 13A of the Insurance Act 2015 (inserted by the Enterprise Act 2016), your insurer must pay valid claims within a reasonable time. If they delay unreasonably, you can claim damages for any losses caused by the delay — for example, lost revenue while waiting for a payout to repair equipment.

What counts as "reasonable" depends on the type of claim. For straightforward claims such as a broken window or minor theft, you should expect settlement within 30 to 60 days. For complex claims involving business interruption, multiple policies, or disputed liability, 3 to 12 months is not unusual.

If your claim is rejected

If your insurer declines your claim, you have options.

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    1. Request written reasons

    Ask your insurer to explain in writing exactly why the claim has been declined, citing the specific policy terms or exclusions they are relying on.

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    2. Review your policy wording

    Read the relevant sections of your policy carefully. Check whether the exclusion or condition the insurer has cited actually applies to your situation. Pay attention to defined terms, which may have specific meanings in the policy.

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    3. Use the insurer's complaints process

    Submit a formal complaint through your insurer's internal complaints procedure. They must acknowledge your complaint within 5 business days and provide a final response within 8 weeks.

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    4. Escalate to the Financial Ombudsman Service

    If you are not satisfied with the insurer's final response, or if 8 weeks have passed without a resolution, you can refer your complaint to the Financial Ombudsman Service (FOS). Businesses with annual turnover under £6.5 million and fewer than 50 employees are eligible.

Common reasons claims fail

Understanding why claims are rejected can help you avoid these pitfalls.

  • Late notification — most policies require you to notify the insurer within 30 days of the incident. Late notification can give the insurer grounds to reduce or refuse the claim
  • Policy exclusions — your policy will list specific events or circumstances that are not covered. Read these before you need to make a claim so there are no surprises
  • Breach of condition precedent — if your policy requires you to maintain a burglar alarm and it was not set at the time of a break-in, the insurer may decline the claim
  • Under-insurance — if your sum insured is significantly less than the actual value at risk, the insurer may apply "average" and reduce the payout proportionally. For example, if you insured stock for £50,000 but it was worth £100,000, the insurer might pay only 50% of your claim
  • Non-disclosure — if you failed to disclose material facts when you took out or renewed the policy, the insurer may avoid the policy entirely under the Insurance Act 2015

Keep copies of all correspondence with your insurer. If a dispute arises, a clear paper trail of what was said and when can be decisive.

What to do next

After your claim is settled, review your insurance arrangements. Consider whether your cover levels are still adequate, whether you need additional cover for risks that were not previously insured, and whether your business continuity plan needs updating based on what you have learned from the incident.

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