The Connection Between Commercial Insurance Claims and Property Damage

2/28/2023 (Permalink)

This local commercial business used our services to maintain business as usual during flooding, thanks to SERVPRO of Media's amazing technicians!

Blog Summary: SERVPRO of Media highlights a study from The Hartford that outlines the most common and most expensive categories of commercial insurance claims, many of which are caused by property damage disasters.

It is essential to protect your home or business against, fire damage, storm, and water damages in a brick-and-mortar location. Damages to your property can be devastating to your building structure and delay the provision of services, diminishing ROI and have the potential to cause an enterprise to close down. It can be easy to fall into the mind set that it won’t happen to you.

SERVPRO of Media has serviced property damages and the restoration needs of our community for over twenty-five years. Our team understands how devastating is can be when a commercial property damage happens to your business. Whether your business is big or small, we would like to highlight some statistics to relay the reality of the possibility of property damages occurring at your facility. These commercial insurance claim statistics are a clear depiction of just how likely disaster in fact to strike.

The Connection Between Commercial Insurance Claims and Property Damage

In a study by the Hartford, two main factors were analyzed.

          Frequency in a particular type of claim or “CLAIM FREQUENCY”

          Cost of Claim “CLAIM SEVERITY”

The study identified the top ten most common commercial insurance claims and ranked the average claim size. The property damage-related statistics below provide business owners and property owners with a perspective that can be quiet sobering.

According to The Balance Small Business, “In recent years, The Hartford analyzed data from claims filed by small business owners over a five-year period. The claims had been filed under more than one million property and liability policies. The analysis indicated that 40% of small businesses would likely incur a property or liability loss within the next 10 years.”

• Water damage and freeze damage: 15% of claims

Water damage is number two on The Hartford’s claim frequency list, this is a common issue for business owners will more then likely face the average cost of $17,000 plus for water and freeze claims. The Balance Small Business notes, “Businesses can avoid freezing losses by clearing roofs of snow and ice, training key workers how to shut off the water, and maintaining an adequate temperature indoors so pipes don’t freeze.”

• Wind damage and hail damage: 15% of claims

The third most frequently incurred damage is a storm damage. Storm damages costs averaging in about $26,000 per claim. High winds and hail can cause structural damage that can lead to water intrusion. Severe weather can make projectiles of trees tree branches, improperly anchored equipment and can be quite destructive. Landscaping maintenance can reduce risk of damage. It is also important when a severe storm is on the horizon to take the proper precautions and have a storm prep plain that will mitigate wind and hail damages. We would suggest securing equipment and furniture located outdoors and reinforcing windows or doors that could be shattered by debris or hail.

• Fire damage: 10% of claims

Fire damage is number four on the frequency list but, in the category of severity of claims ranks in at number three! These damages average in totals of $35,000 plus. Which is almost two times more money then water or freeze damages.

 Prevention is crucial. Fire damages can be expensive and extensive. The Hartford advises businesses to practice fire drills regularly and create an emergency preparedness plan, to test detectors regularly and maintain an up-to-date fire extinguisher or extinguishers available.

• Customer slip-and-fall accidents: 10% of claims

Slip and fall accidents can sometimes also be attributed to water damages. For instance, a customer might slip on a water spill that was not dealt with promptly or a slippery patch of moisture from a hidden water leak. These accidents can be costly and average at about $20,000 for personal injury damages.

How to Move Forward After Commercial Property Damage

Property Damages fall into the top five most common commercial insurance claims, it is important for business owners to prepare and plan for property damages in order to be retro active in the event that any one of these very unpreferred but extremely likely damages occurs. Thorough preparation and periodic maintenance and inspection are key damage prevention when unpredictable fire, water or storm damages occur in Broomall, PA. SERVPRO of Media is available 24/7, 365, for all of your fire water and storm damage disasters. Our trained professional technicians are on call and ready for all your damage remediation and clean up needs. Our rapid attention to your business and needs allows you to resume business as usual and recover financially restoring your business to its pre damaged condition as quickly as possible “LIKE IT NEVER EVEN HAPPENED.”

To learn more about SERVPRO of Media’s commercial damage restoration services, call (610) 566-5720 or email office@SERVPROmedia.com