When natural disaster strikes, the insurance claims process can feel overwhelming. Here are the key steps every business should follow.

Know Your Coverage

Before filing anything, review your policy carefully. Standard commercial property insurance covers direct physical loss or damage to buildings and personal property, but exclusions — such as flooding — are common. Beyond physical damage, most policies also provide business income and extra expense coverage. Business income covers revenue lost due to impaired operations, while extra expense can encompass cleaning costs, additional labor, rental equipment, temporary freight charges, and other costs incurred to keep the business running.

Give Timely Notice

Once you confirm a loss exceeds your deductible or self-insured retention, promptly notify your insurer. Your policy’s General Conditions section will specify what the notice must include and where to send it. A strong notice outlines the relevant facts — the property involved, the time and place of loss, witness information, and any potential business income or extra expense impact — and ties those facts to specific policy language. Late notice can give the insurer grounds to claim prejudice and reject all or part of the claim.

Document Everything

After submitting your claim, take immediate steps to protect the property from further damage and keep detailed records of every expense you incur in doing so. If you are pursuing business interruption or extra expense recovery, gather thorough documentation of your financial status before the loss and evidence of lost income afterward. Bear in mind that if you can reasonably continue operations, your policy likely requires you to do so as quickly as possible.

Cooperate with Your Insurer

Most policies require the insured to submit a sworn proof of loss within 90 days and to cooperate throughout the investigation. Cooperation may include providing inventories of damaged property, permitting inspections, opening your books and records, and even submitting to examinations under oath. After completing its investigation, the carrier must respond in writing — accepting coverage, denying it, or accepting with a reservation of rights.

Consult Coverage Counsel

If your insurer issues a reservation of rights letter, give serious consideration to engaging competent coverage counsel to review. These letters are notoriously difficult for non-specialists to parse. An experienced insurance coverage attorney can review your policy and the insurer’s position, potentially identifying endorsements or other provisions the insurer overlooked. Insurers sometimes misinterpret or ignore policy endorsements that could expand coverage. Engaging counsel early — ideally as soon as you anticipate a claim — puts you in the best position to advocate effectively and maximize your recovery.