Why Proper Claim Reporting Matters
You carry insurance so that when you have a claim, your coverage can step in to cover the majority of the expense for you. It is unfortunate, then, that many people do not understand how they should report their claims. Improper claim reporting can result in the denial of your claim, so it is crucial you get an idea of the right way to report it.
To ensure your coverage offers you the protection you need, you need to understand the importance of proper claim reporting.
First off, you should know the difference between occurrence policies and claims made policies. Occurrence policies cover you for incidents that take place while your policy is in force. In other words, to get covered by your occurrence policy, your claim needs to be in regards to an incident that occurred during your policy period.
Claims made policies protect the individual or business against claims that are reported while the policy is in force. That means that your policy could provide coverage for an incident that occurred prior to your policy period. Generally, you will not be able to get prior acts coverage unless your claims made policy goes into effect immediately after your other coverage expires. In other words, you cannot have an incident occur and then get claims made coverage retroactively to protect yourself.
With an occurrence policy, your claim is assigned to your current carrier. With a claims made policy, your claim will be assigned to the insurer who is covering you at the time you are filing your claim. Consequently, in either case, it is important that the date on your claim is accurate.
Want to talk to an insurance expert about your coverage and its proper claim reporting? Contact Hoffman Brown Company in Sherman Oaks for all of your California insurance questions. Our dedicated staff is here to ensure your claim and your coverage needs are fulfilled.
