Claims History

A claims history is a record of all insurance claims you’ve made over a defined period, typically the last 3 to 5 years. Insurers use it to assess your risk profile and determine your premium.

Think of it like a report card for insurance. The fewer claims you’ve made, the better you look to insurers. More claims signal higher risk, which usually means a higher premium.

Why It Matters

• Your claims history is one of the key factors that influences your premium. A clean history may help you secure more competitive pricing.
• When you apply for insurance or switch insurers, you’re required to disclose your claims history as part of your duty of disclosure.
• Multiple claims in a short period can make it harder to find affordable cover, or in some cases, make you harder to insure.
• Even claims that were denied or withdrawn may still appear on your record and need to be disclosed.

Show Transcript

What is a claims history when it comes to insurance? Well, a claims history, think of it like a report card. It essentially outlines how you've gone with insurance. So, if you drive a car and you've got a car insurance policy and you've made two claims in the last 2 years, it will be on there. And what insurance companies will do is they'll take this into consideration when you're applying for insurance because it helps them understand the type of risk that's involved with insuring this particular policy. Now, in the business context, let's say you're seeking out a public liability policy or there's a business seeking out a public liability policy, but on there they've got a claim. Let's say it's a cafe and someone's tripped over in their store and a customer's actually made a claim against them. That's third party injury and it gets paid out. Now, if they apply for the insurance, the insurers take that into consideration and they are considered riskier because they've already got the claim on there. So again, in short, it's a report card that outlines your claims.

What Insurers Look For

• Number of claims - how many claims have you made in the last 3 to 5 years?
• Type of claims - what were they for? Some claim types are viewed more seriously than others.
• Claim amounts - were they small or large payouts?
• Frequency - are the claims spread out over time or clustered together?
• Whether claims were at fault - at-fault claims carry more weight than not-at-fault claims (particularly in motor insurance).

How It Affects Your Premium

• Clean history - fewer claims generally means lower premiums. Some insurers offer a no claim bonus as a reward.
• Multiple claims - several claims in a short period can result in significantly higher premiums or higher excesses.
• Serious claims - large payouts or claims involving negligence can make it harder to find competitive cover.
• Switching insurers - your new insurer will ask for your claims history and factor it into their quote.

Common Mistakes or Misunderstandings

• Not disclosing past claims. Failing to disclose your claims history can void your policy or result in a denied claim. Always be upfront.
• Thinking withdrawn or denied claims don’t count. Even if a claim was denied or you withdrew it, it may still need to be disclosed.
• Assuming a clean history means the cheapest premium. Claims history is one factor. Industry, location, coverage limits, and other variables also play a role.
• Making small claims that aren’t worth it. If the claim amount is close to your excess, it may not be worth claiming and adding to your history. Discuss with your broker first.

When to Speak to a Broker

If you have a complicated claims history and are struggling to find competitive cover, or if you’re not sure what you need to disclose, a broker can help present your risk in the best light and find insurers who are comfortable with your profile.

Need help?

Got questions about how your claims history affects your business insurance? Reach out to Tank Insurance and we’ll help you navigate it.

Related Terms

• No Claim Bonus - A premium discount you earn by not making claims. Your claims history directly determines whether you qualify.
• Insurance Premium - Your claims history is one of the key factors insurers use to calculate your premium.
• Duty of Disclosure - You’re legally required to disclose your claims history when applying for or renewing insurance.