What is proof of loss?

When you file a claim against your commercial insurance policy, the insurer will require you to prepare a proof of loss form. Many people believe that this is proof of loss insurance, but this document is just part of the claim filing process.

Proof Of Loss Insurance Definition

What is proof of loss? Proof of loss or notice of loss is a document that all claimants must prepare to show the insurance company the damages or losses they have incurred. This form is a mandatory part of the claim process, and your insurance settlement will be based on the information on this form.

A proof of loss statement will include the following information:

• Claimant name, address, phone number, and policy number
• The date that the loss occurred
• Cause of the loss such as wind damage, fire, theft, or any covered event
• Itemized account of the damages and the monetary value of these damages
• Documentation to support the claim

All insurance companies have a proof of loss provision in their policies so that the actual losses can be documented and there is no speculation of losses incurred.

Claims Can Still Be Denied

It is very important to understand that proof of loss coverage is not guaranteed. In fact, many insurance companies are very liberal with denying parts of a claim or the entire claim when a loss happens. Why? Because it is always in their best interest to pay out as little as possible for a claim.

Working with an attorney can help you avoid this dilemma. Your property damage attorney will review all of your losses, prepare the form correctly, including all of the supporting documentation, and submit the claim. They will do all of this based on the terms of the insurance policy so that there is no question about coverage

Your attorney can also be your representative if there are any questions about the claim or if negotiations need to take place to finalize the claim. Your insurance claim attorney will have the experience and knowledge of your policy backing the claim, making it much easier for your claim to be approved.

Proof of Loss of Coverage

Proof of damage or loss should not be confused with loss of coverage. Loss of coverage means that there was no policy in place or that the policy that was covering the business has lapsed.

Proof of damages or loss concerns anything that you are claiming against your current commercial insurance policy.

Working With Your Attorney On A Statement of Loss Coverage

Business owners are encouraged to work with an attorney when they are preparing a statement of loss. Why? To ensure that they receive coverage for everything that has been damaged or lost in the event that caused the claim.

Loss can be devastating for a business, and when an owner is trying to get everything back into place so that they can get their business operational again, it is easy to overlook little things that should have been claimed.

For instance, if your business has been burglarized and the door was damaged, it may be easy to overlook the physical repairs to the door frame, the replacement of the door, and the replacement of the locks when you are concerned with what was stolen or damaged during the event.

The same applies to storm damage. As the business owner, you may be panicking about the water damage to your stock or equipment from the hole in your roof, but did you think about things like having to have your walls dried out and mold remediation to keep your building safe for employees and customers? If there was fire damage, did you include treating the property to remove the smoke smell?

When you work with a property damage attorney, all of these small issues are included in your claim so that you can receive the true full value of your losses.

When you have an attorney representing your claim, you can be assured that all deadlines for making a claim are met. There is a proof of loss insurance time limit to make a claim and to respond to offers. Your attorney can make sure that these deadlines are met so that you are not denied coverage on a technicality.

Loss can be devastating to any business regardless of the extent of that loss. Make sure you get the most from your commercial property insurance policy by working with an attorney when you file a claim. Contact the property damage attorneys at Landau Law today to schedule a free consultation. 

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