Delayed insurance claims can be frustrating and stressful, especially when you’re trying to get your business back on its feet. Understanding why these delays happen is the first step to avoiding them.

Knowing your policy, keeping detailed records, and communicating effectively with your insurer or claims handler, are key steps to your claims running smoothly.

5 common reasons for delayed insurance claims

Your insurer or claims handler has to look into a claim before paying out and this process can be held up for a number of reasons. Here are some of the most common causes of business insurance claims delays.

1. Missing documentation or evidence from your claim

This is the most common cause for a claim delay. When you make a claim, your insurer will need evidence to support it.

You need to be able to show your insurer what happened, as clearly as possible. Your evidence could be photos of the damage, receipts for stolen or broken items, or a Crime Reference Number (CRN) if a crime was committed.

If you don’t provide all the necessary documents from the start, the claim could be delayed or stall completely.

2. Submitting incomplete or incorrect information

One of the most frequent reasons for a delay is simple human error. If you submit a claim form with missing details or incorrect information, your insurer can’t settle your claim.

They’ll need to contact you to clarify the details which will naturally delay your claim.

It sounds simple, but double checking the information you submit is correct could save you time in the future.

3. Misunderstanding your policy

Insurance policies contain specific terms, conditions, and exclusions. A claim might be delayed if there’s a question about whether your policy actually covers what you’re claiming.

For example, your policy might cover water damage from a burst pipe but not from a flood. These details matter, and it takes time for an insurer to confirm what’s covered.

With this in mind, it’s a good idea to double check the details of your policy before making a claim.

4. The claim has a complex liability

On top of this, some claims are too complex to be solved quickly. When there’s a grey area around who’s at ‘fault’ for a claim, payouts will take longer than usual.

For example, a customer slips and injures themselves in your store and is unable to work, so they make a claim for their lost earnings. But because their slip was caused by a leak from a fridge that was recently serviced by an external contractor, the claim becomes complex.

You claim the contractor is at fault because you believe their work caused the leak. While the contractor claims the leak came from natural wear and tear, not their work.

Then it comes down to the insurers to decide who’s liable for the claim. These kinds of complex cases can sometimes take months, even years to resolve.

5. An expert’s opinion is required

Sometimes, finding the root cause of a claim is complex and requires an expert opinion. And this can add some time onto a claim.

For example, if someone claimed on their insurance because of water damage caused by a leak, it might not be clear where the leak started. Your insurer might need to bring in an expert to locate the origin of the leak.

How to avoid claims delays – key takeaways

While you can’t control every part of the claims process, you can take steps to make it as smooth as possible. Being proactive and organised can make a real difference.

communicate promptly – respond to any requests from your insurer as quickly as possible. If you need more time to gather information, let them know and give them an idea of when you’ll be able to provide it
understand your policy – before you even need to make a claim, read your policy documents carefully. Make sure you understand what’s covered, what’s excluded, and what your responsibilities are
keep good records – record-keeping is vital. Keep an up-to-date inventory of your business assets, including equipment, stock, and furniture. Hold on to receipts, invoices, and photos, as these will be crucial if you need to prove ownership or value
complete forms accurately – when filling out any insurance forms, take your time and double-check every detail. Make sure all the information is accurate and complete to the best of your knowledge

document the incident thoroughly – if you need to make a claim, gather as much evidence as you can, as soon as you can. Take clear photos or videos of any damage from multiple angles. If applicable, get a crime reference number from the police. Write down exactly what happened, including dates and times

Why insurance claims get delayed FAQs

Why is my claim taking so long to process?

Claims often stall because of incomplete documentation or missing evidence. If the insurer has to chase you or a third party for photos, receipts, or witness statements, the file sits inactive until that information is received.

Why does determining liability cause delays to claims?

If fault isn’t obvious (like in a complex construction accident), insurers must investigate. They interview witnesses, review contracts, and debate with other insurance carriers. Until they agree on who’s legally responsible, no one pays out.

Why is the insurer waiting for a third party to settle my claim?

In liability claims, your insurer often needs a statement or response from the other person involved. If that person ignores calls, denies involvement, or delays sending their version of events, your insurer can’t move forward with the settlement.

How do natural disasters affect my claim speed?

During “surge events” (like widespread flooding), insurers can sometimes receive thousands of claims simultaneously. This creates a backlog where claims are handled in a queue rather than immediately.

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Why insurance claims get delayed (and how to avoid it)