More moving parts than a typical claim
A commercial property policy for an industrial building can include several coverages that respond to the same event: the building itself, business personal property such as equipment and fixtures, stock, business income or extra expense, and sometimes equipment breakdown. A tenant and a landlord may each have their own policy for different parts of the same loss. Read the declarations page and talk with your agent early so you know which coverages may apply and what deductibles you face.
On a big loss, the carrier may assign a large-loss adjuster who brings in building consultants, engineers or accountants. That is normal and not a sign of trouble, but it means more site visits, more document requests and more back-and-forth. Some owners choose to hire a public adjuster to represent them; if you consider that, understand how they are paid and what they will handle before signing anything.
This page is general information, not legal or insurance advice. Policies differ, and your agent, adjuster and any attorney you retain are the ones who can speak to your specific coverage.
Typical stages of a large commercial claim
The order and length of each stage vary by carrier, policy and the size of the loss.
- First day
- Loss reported to the agent or carrier. Emergency mitigation begins to prevent further damage, which most policies expect.
- First week
- Adjuster inspects. Mitigation documentation, photos and moisture readings start accumulating. Inventory and equipment damage are listed.
- Following weeks
- Building consultants or engineers may review structure, roof or systems. Mitigation invoices are submitted. Business income impacts begin to be tracked.
- Scope agreement
- Repair scope and estimate are reviewed by both sides. Differences are discussed line by line. Additional damage found during demolition is submitted as supplements.
- Reconstruction
- Repairs proceed, with progress payments where the policy and lender arrangements allow.
- Closing
- Final invoices, proof of completed work and any recoverable depreciation requests are submitted.
Records that usually support each coverage
| Coverage area | Records that help | Who usually produces them |
|---|---|---|
| Building | Photos, moisture logs, estimates, invoices, engineer reports | Restoration provider, contractors, consultants |
| Equipment and fixtures | Asset lists, service reports, replacement quotes | Maintenance staff, manufacturers |
| Stock and inventory | Inventory records, disposal logs, valuation data | Warehouse and accounting staff |
| Business income or extra expense | Production records, overtime, temporary space and freight costs | Finance and operations |
| Debris removal | Haul tickets and disposal receipts | Restoration provider or hauler |
Questions to ask the adjuster early
- Which coverages do you expect to apply, and what deductibles go with each?
- What documentation do you want for inventory before it is disposed of?
- Will you need a consultant or engineer to see anything before it is removed?
- How do you want mitigation invoices and moisture logs submitted?
- How should business income or extra expense costs be tracked from day one?
- Who is my single point of contact if the claim is assigned to a large-loss team?
General information for Commerce City, not a quote or professional advice. In an emergency, call 911.