How to File a Liability Insurance Claim

Business owners have a contractual obligation to inform the insurance company or agent as soon as they become aware that there is or could be a liability claim. The insurance policy contains a "reporting clause" that specifies the time an insured has to file a claim. With a standard general liability insurance policy, it is recommended that a claim be reported as soon as you know of a loss.

You should report all liability claims to the insurance company as soon as possible. Your report should include:

  • The details of how, when and where the accident took place.
  • The names and address of any injured persons and witnesses.
  • All copies of any demands, notices, summonses or legal papers received in connection with the claim or suit to the insurance company as soon as possible.
  • An authorization for the insurance company to obtain records and other information.

Your policy requires you to cooperate with the insurance company in the investigation, settlement or defense of the claim or suit.

Unless all of the terms set out in the policy have been fully complied with, you might not be able to collect from the insurance company.