What Are The Most Common Business Insurance Claims?

What Are The Most Common Business Insurance Claims?

As a business owner, many aspects of the job are sure to keep you up at night. “What if my place gets broken into?” “What if a customer or employee slips and falls on the property?” “What if lightning strikes our location?” When events like fires, injured customers, and property damage arise, you’ll be glad you have the right coverage to take care of it. 

But with all the different types of coverage available, how do you know which type of business insurance is right for you? 

Below you’ll find the most common business insurance claims:

Burglary & Theft

Almost every commercial business has experienced burglary and theft by customers and even employees. Out of all the insurance claims filed every year, burglary and theft claims happen the most.  

A recent survey shows that 54% of small business owners reported a case of theft and experienced increased shoplifting in 2021. Every business has something to steal, whether it be money, supplies, data, etc. It’s no surprise that it’s the most common business insurance claim. 

Water & Freezing Damage 

Water damage and subsequent freezing from burst pipes or flooding from rain storms are the second most common insurance claim. Obtaining commercial property insurance can cover the cost of damages. You should also include expenses related to fixing structural damage.

Staying on top of snow and ice removal can help minimize the risk of freezing damages, and maintaining an adequate temperature indoors can keep pipes from bursting. Turning your water off if you are going to be away from your home for more than 72 hours can prevent unexpected damage from burst or leaking pipes.

Wind & Hail Damage

During heavy storms, wind can become so strong that it brings trees and branches down onto buildings. Hail can damage roofs and windows, while tornadoes can completely demolish your commercial business. Intense, right? According to business insurance brokers from Nation West, wind and hail damage can cost your business thousands of dollars in repairs. The right commercial insurance policy will help cover the cost of hail damage and wind storms. 


Fires can affect both small business owners and bigger retail businesses. If your company has experienced fire damage or losses due to a major fire, you can file a commercial property insurance claim to cover your financial losses. In some cases, businesses may need to replace damaged equipment and rebuild areas of the building. If your company’s operations are on pause due to fire damage, you can rely on business interruption insurance to cover the money you lose while the business is temporarily interrupted. 

Customer Injury & Property Damage 

Customer injury and property damage are exactly as they sound. Accidents are bound to happen on your property, and any personal injury to a customer or damage to someone’s property can be taken care of by your general liability insurance policy. These two insurance claims are quite common across most industries, from construction to retail. 

Your company needs insurance if a customer slips and falls while visiting your establishment or a vehicle crashes into the front of your business, causing severe property damage. 10% of businesses submit an injury claim due to slips and falls. But if any medical expenses, legal fees, or repairs are associated with a customer injury or property damage claim, your general liability insurance can help. 

Product Liability 

If any of the products you sell or manufacture are faulty, there’s a good chance you’ll be held responsible for related damages, injuries, or illnesses that your customers experience. This common insurance claim happens in retail, manufacturing, and distribution industries.  

If your company doesn’t have the right insurance policy, you’ll be responsible for medical expenses, legal fees, loss of wages, and the cost of a product recall. General liability and product liability insurance policies can help your business by taking care of the risks associated with product liability claims.

Reputational Harm

A reputational harm claim can arise if another business or individual decides to sue your company for causing them to lose face. It can also derive from an event that causes your business to have its reputation questioned or negatively affected. 

These claims are common among businesses responsible for storing customer data, such as banks, retail stores, and media organizations. General and professional liability insurance policies can protect your business’s reputation. 

Auto Accident

If your business uses commercial vehicles, you should have the proper coverage in the event of vehicle damage, property damage, and/or injuries. A commercial auto insurance policy can protect your business, employees, and commercial vehicles in the wake of an accident. 

What Are Insurance Claims?

An insurance claim is a formal request made with an insurance company for losses covered by the business’s chosen insurance policy. Any time you experience a financial loss caused by an accident or damages, you will file an insurance claim. In addition, you’ll need to ensure that your policy covers your claim. 

Once the claim has been filed, an insurance professional will investigate your case. Your business will receive payment for losses if the claim has been deemed legitimate. 

What if My Insurance Claim Gets Denied?

You may think you’re out of luck if you receive a denied insurance claim, but you have a few options. You can write a letter to your insurance company that details why you believe you don’t deserve to be denied and provide detailed records and receipts to support your claim. 

You can also consult an insurance professional to discuss your case and get some advice or hire a lawyer to take your case to court. 

Are you looking for the best insurance products? Our team at Nation West Insurance can provide business coverage for small to medium-sized businesses. Our focus is and always will be on you. Connect with one of our insurance professionals today!

Ken Coughlin

About the Author

Ken Coughlin


Experienced Chief Executive Officer with a demonstrated history of working in the insurance industry. Strong business development professional skilled in Negotiation, Budgeting, Business Planning, Operations Management, and Property & Casualty Insurance.

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