The moment that tests a business insurance policy is the claim. Most rejected or reduced claims come down to a handful of avoidable problems: late notification, missing records, cover that did not match the business, or details the insurer was never told. This guide covers how to claim, and how to set up your cover so that a claim is paid. For the types of cover available, see our guide to business insurance.
Step 1: Report the loss quickly
Every policy sets a period within which you must notify the insurer, and late notification is a common reason for rejection. Report the incident to your broker or insurer as soon as you can, and to the police for theft, break-ins or malicious damage. Keep the case number.
Step 2: Limit further damage
You are expected to take reasonable steps to prevent further loss, such as covering a broken window or moving undamaged stock. Keep receipts for these costs, since they are often claimable.
Step 3: Gather evidence
- Photographs and video of the damage before anything is cleared or repaired
- Invoices or proof of purchase for damaged or stolen items
- Stock records and recent stock counts
- For business interruption claims, financial records showing normal turnover
- The police case number where relevant
Step 4: Work with the assessor
For larger claims, the insurer appoints an assessor. Give them access and the documents they ask for, and get repair quotes in writing. Do not start major repairs before the insurer approves them unless it is an emergency.
Why claims get reduced or rejected
- Underinsurance. If you insure assets for less than their value, many policies apply an “average” clause and pay only a proportion of the loss.
- Non-disclosure. Not telling the insurer about something material, such as a change of premises or a new type of work, can void the cover.
- Security conditions. Policies often require alarms, burglar bars or safes to be in place and working. If they were not, the claim can fail.
- Excluded events. Some losses, such as wear and tear or certain kinds of damage, are excluded. Read the exclusions before a loss, not after.
If your claim is rejected
Ask for the reason in writing and the policy clause it relies on. Use the insurer’s internal complaints process first. If that does not resolve it, you can take the complaint to the National Financial Ombud Scheme, which has handled short-term insurance complaints since March 2024. The service is free.
Frequently asked questions
How long do I have to report a claim?
It depends on the policy, so check yours. Report as soon as possible regardless.
Will claiming increase my premium?
It can, particularly after several claims. Small losses close to your excess may not be worth claiming.
What is an excess?
The first part of any claim that you pay yourself. The insurer pays the rest of an approved claim.
Can I choose my own repairer?
Sometimes. Many insurers require approved quotes or their own panel of repairers.
Where can I compare insurers?
See our review of business insurance companies for small businesses.
Originally published in August 2020. Updated September 2026.
