Title: Dealing with Property Damage: An Employee's Car Damaged Due to a Fallen Steel Door
Introduction
A steel door from your business commercial building fell off and damaged your employee's car. Now, the landlord has asked your employee to file a claim with their personal insurance and pay the deductible. Is this the right approach?
Understanding the Insurance Claim Process
The first step is to understand what constitutes a valid insurance claim. Your employee should not file a claim with their personal insurance under these circumstances. Filing a claim with personal insurance unnecessarily subjects the employee to potential adverse effects, including increased insurance premiums or even claims that can appear on their insurance record.
Why Your Company's Insurance Should Be Involved
To protect your employee and streamline the process, the claim should be filed through your company's insurance. Here are the reasons:
1. Ensuring Full Coverage
Your company's insurance can potentially have broader coverage and better rates. By using your company's insurance, the claim can be processed more efficiently.
2. Avoiding Personal Liability
It is not fair for your employee to bear the financial burden of a claim that originated from a commercial building, which is the landlord's responsibility. Filing through your company's policy ensures that the coverage and responsibility are distributed appropriately.
3. Subrogation Process
Subrogation is a process where your company's insurance can seek reimbursement from the at-fault party. In this case, your company's insurance can potentially recover the costs from the landlord's insurance, reducing your employee's financial burden.
Steps to Take
To handle the situation effectively:
1. Report the Incident to Your Company's Insurance
Submit an incident report to your company's insurance and inform them of the landlord's request to file a personal insurance claim. Emphasize that the landlord is responsible for the damage and ensure they do not require the employee to pay any deductible.
2. Obtain the Landlord's Insurance Information
Request that your employee obtain the landlord's insurance agent's contact information and submit the claim directly to the landlord's insurance company. This approach can result in a faster and more favorable settlement.
3. Advise Your Employee on the Benefits
By filing through the landlord's insurance, your employee's insurance premiums and claims history will remain unaffected. The landlord's insurance will also cover the costs and rental car expenses, ensuring that the employee does not have to bear any financial burden.
Conclusion
It is crucial to handle property damage claims involving your employees and commercial buildings meticulously. Filing a claim through your company's insurance, or directly with the landlord's insurance, ensures that the damage is covered fairly and prevents unnecessary personal liability for your employees. Proper documentation and timely communication are key to resolving these issues effectively.