Developing a clear understanding of the claims process for construction insurance in Ireland is a critical aspect of risk management for a range of professionals, from contractors and builders to developers.
The more familiarised a policyholder becomes with the process, the less likely they are to find themselves in over their head in the event of a claim.
In this post, we discuss the claims process in detail, providing a step-by-step guide for those with active construction insurance.
Step 1. Prompt notification of the insurer
The first step in the claims process is to notify your insurance provider as soon as an incident occurs. Immediate communication is crucial to ensure both physical evidence remains intact, and witness accounts of any incident and the details surrounding it can be easily recounted. Delays at this early stage can complicate the claims process and may affect the outcome.
Most insurance policies stipulate specific timeframes for reporting incidents, so adhering to these is essential.
Step 2. Documentation and evidence collection
After notifying your insurer, you will be required to complete a claim form. It’s vital to provide comprehensive and accurate information to avoid delays. Further documentation will also be required to substantiate your claim. This will include:
- Incident reports – detailed accounts of the event, including dates, times and descriptions.
- Photographs – visual evidence of damage or loss.
- Witness statements – contact information and testimonies from individuals who observed the incident.
- Repair estimates – quotes from contractors for necessary repairs.
Maintaining organised records of all communications and documents related to the claim will facilitate a smoother process.
Step 3. Engaging with loss adjusters and assessors
If you are dealing with a claim, you will quickly learn the roles of both loss adjusters and loss assessors. But what is the difference between the two?
Insurance companies often appoint loss adjusters to assess the validity and extent of the claim. These professionals evaluate the damage and determine the compensation amount. It’s important to note that loss adjusters work on behalf of the insurer.
Alternatively, you may choose to hire a loss assessor who represents your interests during the claims process. However, assessor fees are typically not covered by your policy and will be an out-of-pocket expense.
Step 4. Understanding policy terms and conditions
Becoming familiar with your policy’s terms, conditions and exclusions is crucial in the face of a claim. Key aspects to consider include:
- Excess amounts – the portion of the claim you are responsible for paying.
- Coverage limits – the maximum amount the insurer will pay for a claim.
- Exclusions – specific situations or items not covered by the policy.
Reviewing these details will provide you with realistic expectations regarding the claim outcome.
Step 5. Mitigating further damage
After an incident, take reasonable steps to prevent additional damage. This may involve temporary repairs or securing the site. However, you must always consult your insurer before undertaking significant repairs to ensure these actions are covered under your policy.
Step 6. Claim settlement and resolution
Once the assessment is complete, the insurer will provide a settlement offer. If you agree with the offer, the claim will be settled accordingly. If you disagree, you have the right to negotiate or appeal the decision.
Insurers are required to have a written procedure for dealing with claims and must inform you of their decision within 10 business days of making it.
Step 7. Dispute resolution
In cases where disputes arise, an internal appeal could be explored, whereby the insurer’s formal complaints process can be utilised. Another option is to take legal action, but this should be a last resort to avoid the stress and financial implications that can go hand in hand with pursuing a matter through the courts.
The best practices for a smooth claims process
A smooth claims process is in everyone’s best interest. To facilitate this, it’s advisable to plan by ticking a few important boxes so that you’re well prepared if a claim were to crop up. This involves:
- Maintaining comprehensive records: Keep detailed records of all projects, including contracts, communications and site activities.
- Regularly reviewing insurance coverage: Ensure your policy reflects the current scope and value of your projects.
- Training staff on reporting procedures: Educate employees about the importance of prompt incident reporting and documentation.
By understanding and adhering to these steps, construction professionals in Ireland will be better prepared to face the insurance claims process, placing them in a prime position to receive the support and compensation necessary to continue their work with minimal disruption.
Understanding the claims process for construction insurance in Ireland
Developing a clear understanding of the claims process is essential for construction insurance policyholders, as it ensures prompt action in the event of a claim and minimises financial and operational disruptions. This knowledge helps avoid disputes and ensures claims are resolved efficiently, protecting cash flow and maintaining project timelines.
Additionally, understanding policy terms, such as coverage limits and exclusions, prevents unwelcome surprises during claims.
Take the stress out of the claims process for construction insurance in Ireland with our help
With nearly 30 years of experience in insurance, our team at ERM Financial Services offers comprehensive support to construction insurance policyholders.
We specialise in tailoring insurance policies to meet the unique needs of construction businesses, covering areas such as employers’ and public liability, contractors’ all risks, and personal accident insurance.
By combining expert claims support with customised insurance solutions, we are proud to help our clients safeguard their operations and focus on their core business activities. Contact us today for expert advice on a range of construction insurance solutions.