What typically happens first in the claims process?

In the claims process, the first step typically involves reporting the claim. This is essential as it initiates the entire claims handling process. When a policyholder experiences a loss, they must inform their insurance company about the event, providing initial details such as the nature of the loss, date, and location. This reporting is crucial because it allows the insurer to begin their internal processes.

After the claim is reported, the insurer will then assess the damage, conduct investigations, and ultimately decide on the approval or denial of the claim. The timely reporting of a claim is significant because it ensures the policyholder receives the necessary assistance and that the insurance company can start its procedures to resolve the claim efficiently.