Busy business owners may not always have time to investigate the minute details of business auto claims, so when they hear that there is a special claim services department involved, they may not take time to understand what that means. However, understanding how special claim services work gives these policyholders insight into the insurance industry and might help them to coordinate policies in the future.
Paying Secondary: The Insurance Conundrum
In many areas of the insurance industry, there are a lot of problems related to overlapping coverage. One of the main issues is that when coverage overlaps, insurance companies have to figure out who pays primary and a secondary. They also have to figure out how a primary payment may affect a secondary payment. This leaves room for all kinds of mistakes and errors, and a lot of hair-pulling by all involved.
Business Insurance and Commercial Auto Insurance
The reason that a business auto claim may lead to overlapping insurance is that many businesses have some kind of overall policy for liability related to their daily operations. However, they also have commercial auto insurance for covering their workers as drivers of company or commercial vehicles. That’s where a business owner may have some vaguely overlapping coverage, and that’s where special claim services may get involved.
The company that has provided the business car insurance may have its own special claims department, where specially skilled individuals handle unusual claim situations. The same may be true of the other company that provides general business liability insurance. In some cases, these two departments will have to battle it out to figure out who will pay on a claim.
Effect on a Business
What business owners need to realize is that delays on payments can have negative consequences. If the claim involves a third party, that third party will want their payment, but the claim payout can get tied up between the various insurers that are involved. The business owner will have to stay engaged and up to date on what the insurers are doing to resolve the situation.
Dealing with Special Claim Services
Business owners may want to contact the special claim representatives to find out what information they need to help process the claim from their end. Knowing these point people and finding out what they need can go a long way to resolve a claim situation. In some cases, there are also private independent companies who may call themselves “special claim services” and who may offer some help as consultants in expediting insurance claims.
Keep the above in mind if you hear that a special claim services representative is involved with the claim arising from daily business operations, or an accident involving one of your commercial vehicles.