Claim Preparation

What is Claim Preparation?

Claim preparation is the complete process of quantifying, organizing and substantiating a claim in a loss event. It involves developing the optimal methodology to quantify loss and compiling evidence of a provable business loss. The structure and type of evidence needed can vary depending on the insurance policy.

In some instances, it may involve investigating and documenting losses with photos, videos and written evidence. It can also involve gathering documentation such as receipts, invoices, medical bills, government reports and other evidence of losses being claimed.

Once all of this information is collected, it must be organized and submitted in accordance with insurance policy requirements in a timely and complete manner. While the process can be arduous, it is important for all claim information submitted to be comprehensive and accurate.

Why is Claim Preparation Important?

Organizations are obligated to prepare a claim and submit it to their insurers in the event of a loss. Often, the process of preparing a claim is technical and can be very complex, especially for major incidents with significant losses. The claim will need to be prepared according to the insurance contract and general industry practice.

Insurers engage a broad array of internal and external experts, including loss adjusters and forensic accountants, to represent their interests in the claims process. In the same vein, insured companies can benefit from engaging claims preparation professionals to represent their own interests and help secure claims outcomes.

A claim submission communicates the policyholder's loss to the insurer. Companies get a limited opportunity to present their case to the insurer with credibility, and if a claim is poorly prepared or not properly documented, this is likely to result in settlement delays and, at worst, can lead to the rejection of a claim entirely.

Claim preparation ensures an organization's claims are processed efficiently, disputes and delays are minimized and provides an improved chance for receiving a fair settlement under an insurance policy.

Claim preparation does not need to be costly and may be covered under some insurance policies, as the intention of an insurance policy is to insure against all costs associated with an incident, including preparation work. These clauses are typically found as an extension to property and business interruption wordings but can be included in other lines of business.

How Aon Can Help

Disclaimer: The information contained on this page is intended to assist readers and is for general guidance only.