There are various aspects of the claim's process that one needs to familiarize himself with in order to understand and lessen the anxiety when a claim occurs. Once the insurance company is notified of a loss against its policy a representative will be assigned to handle the claim. The first step in the process is for the representative of the company to determine if there is coverage that applies. The will look to see if a policy is in effect for the time of loss and if the loss is covered under the policy. The second step in the investigation is a determination of liability. They will interview all parties involved, get accident reports and witness statements. By doing this they will be able to determine whom the responsible party is for the losses incurred.

After liability is determined and it is found that the insured is the responsible party then the claim's adjuster will review the damages to the property and/or any bodily injury. The insurance company is only responsible for damages arising out of the covered loss. Any losses that are determined not related to the accident will not be covered. All medical information is gathered in this time, this includes medical bills, lost wages, prognosis and projected future expenses if the need arises. This portion of the investigation allows for the claim's adjuster to determine the amounts that should be paid out before a claim can be settled.

The next step in the claims process is the pay out of damages to the insured and/or claimant party. Critical assessment of the claim and fair claims handling will serve for a better outcome of the loss. If a claim's adjuster and those making a claim against the policy remain in a less antagonistic atmosphere and determine to resolve the matter amicably, litigation, mediation and a lengthy claim's process can be avoided. However, there are times when it is necessary to seek legal advice regarding a loss sustained by the wronged party.

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