We rarely reject our clients’ claims but it can happen on occasion (around 4% of all claims are rejected). The good news is you can act now to increase your chances of having your next claim paid.
Here’s a list of the top four reasons we reject claims – and tips on how you can ensure it doesn’t happen to you.
The top reason why we reject claims is late reporting of an overdue payment or adverse information (for example, if a cheque bounces).
It’s very easy to assume your customer is going to pay you next week. That's what they're saying so you delay reporting, but by the following week they still haven’t paid… After a while, the maximum date to report the claim has passed.
Reporting on time is essential:
You should take note of the terms of your cover (maximum payment terms, Maximum Extension Period, reporting deadlines…) and let us know right away when something happens that could put payment at risk.
Check out our guide on Reporting overdue or adverse information.
Without a valid credit limit on an existing or new customer, if they fail to pay you, the debt will not be insured.
Here are the things you want to keep track of:
Sadly, fraud is increasing and limiting the risk is a growing challenge for businesses. It’s important to establish that your customer is who they say they are – and not someone looking to secure products without paying for them.
In a common scam, a fake customer will pretend to be from a reputable company and will try to establish a trading relationship with you. It’s only when they don’t pay and you file a claim that you discover that you weren’t dealing with the legitimate company.
This is an illegal act and we can only cover legitimate companies. It’s important to stay vigilant and research new customers thoroughly.
Check out our guide on How to steer clear of fraud.
It’s vital to establish a paper trail for each transaction to establish a valid contract, including purchase orders, signed delivery notes, terms and conditions. Without this paperwork, a non-payer could slip through the net if it goes to court. You must show evidence of the contract and specifically that the customer asked for the goods or services you supplied and that they received them.
To sum up, here are actions to take to ensure your claim will be paid:
Download the guide
Top 4 reasons why we reject claims