When should you report a claim to your insurance company? Every claims adjuster will tell you “report all possible claims to us as soon as you can.” However, following their advice will usually turn out badly for a restoration firm. If every time a customer says they are unhappy about something at the job site, and your response is “that’s why I have insurance, take it up with my insurance company,” it is really easy to run up a claims frequency problem.
A little known fact in the insurance business is that a series of small claims made on a policy can make a firm uninsurable due to claims frequency, even when the dollar amounts are small in total. In contrast, a single large claim measured in the hundreds of thousands of dollars may be glossed over in the insurance underwriting process.