COVID-19’s Effects on Property Insurance Company’s Processes
We may be entering a new year, but the pandemic still has the property insurance industry adjusting to new processes. The industry’s policies are continuously challenged by today’s property insurance claims.
As a third-party insurance company, we had to warn the property insurance agencies we’re working with about the trends in that area. Here’s what you need to know about them.
More Intensive Handling for Business Interruption Claims
The coronavirus is not covered in business peril policies which only consider factors like fire, flood, machine breakdown, and other physical damages.
Profit losses leading to business closure are not grounds for a business interruption claim. Even if contamination is said to have made the property unoccupiable, there’s still no way to prove it.
The General Insurance Council clarified in April 2020 that profit loss or business interruption claims are only triggered by material damage.
Still, it’s up to the insurers’ opinion whether they’ll take COVID-related profit losses as business interruption.
Our company has received many consultations about this, and we’ve given different pieces of advice depending on the company’s resources.
The Rise of False Property Insurance Claims
This is inevitable given the strict peril policies for business interruption claims. We advise our insurance agencies to stay alert about the following activities:
- Arson: Some out of business organizations might seek financial relief by damaging their own properties. Out of job individuals might also resort to home arson if they’re struggling with paying their mortgages.
- Fake Theft Reports: For quick money, some shut-down businesses might plot fake theft of their machinery in their properties.
- Intentional Damages: Some individuals in a tight financial position might intentionally damage their property by creating a fake case of burst pipes or other major construction issues.
In light of such awful possibilities, we’ve advised property insurance agencies to relay irregular claims to us. Here at Accuracy Improvement, we’re very particular with investigating inconsistencies.
We specialize in producing quality estimates, so we definitely don’t let these cases slide. After our thorough assessment, we also educate the company on how they can analyze such cases on their own.
Our team of elite adjusters doesn’t only create high-quality estimates. They’re also dedicated to helping property insurers innovate and optimize their internal processes.
More Negotiations for Property Insurance Claim Estimates
Expect longer negotiation sessions nowadays. Insurance clients may be in a rush to get support, but that’s all the more reason for adjusters to take their time.
However, here at Accuracy Improvement, we don’t believe that quality cannot be delivered quickly. We help insurance companies stay on top of their estimates during this crisis without falling for scams or giving inaccurate estimates.
During this time, your insurance agency can’t afford to say no to incoming claims. And to keep these claims coming, it’s worth investing in a third-party insurance company’s assistance.
Fewer negotiations, more satisfied clients.
Ultimate Solution: Hiring Third-Party Property Insurance Claim Adjusters
The property insurance industry is experiencing a tremendous shift. It’s still uncertain where it’s headed, but there are ways to successfully navigate these changes.
Let our team here at Accuracy Improvement help you with your processes, estimate creation, reinsurance edits, and even adjuster onboarding.
Our elite staff of experienced claims handlers will give you custom strategies for managing claims in this new normal. Feel free to contact us to know more about our services.