Guide · Business claims
Commercial property insurance claim in Israel
Business premises, equipment, stock and vehicles may be insured under one policy or several. This guide explains how a commercial property claim is examined and where the gap tends to form.
Adv. Sassi Lev
Insurance claims and property damage
What a commercial property insurance claim in Israel covers
A commercial property insurance claim in Israel generally depends on the wording of the policy, and Israeli insurance contracts are governed by the Insurance Contract Law, 5741-1981. Business policies may be built from several parts, each with its own insured sum and conditions.
The first step in any claim is to identify which part of the policy applies to each item of loss. Our page for business clients describes the claims we handle for companies, and the business insurance claims page covers buildings, equipment and stock.
- Building and fixtures, including damage from fire, water or a burst pipe
- Stock and inventory, valued according to the policy wording
- Equipment and machinery
- Business interruption and loss of profits, if purchased
- Vehicles and fleets, under comprehensive or third-party property cover
The first days after a loss
What happens in the first days often shapes the whole claim. Report the event to the insurer as soon as possible, in writing, and keep a copy of the report and of every answer. If the premises need urgent repairs to prevent further damage, photograph and film the damage first and keep damaged items or samples where you can.
Appoint one person in the company to own the claim. That person keeps the timeline, collects documents from operations and finance, and is the one who answers the insurer and its assessor. Mixed messages from several departments can slow a claim down.
Business interruption
Business interruption and loss of profits are generally covered only if that part of the policy was purchased, and on its conditions. Check the policy schedule for the indemnity period, the insured sum and any waiting period.
A business interruption claim usually rests on financial records: turnover before and after the event, fixed costs, and the steps taken to reduce the loss. Record the dates of decisions about repairs and replacements, because they may matter when the length of the interruption is examined.
Where commercial claims can stall
In a major event, the dispute can concern the extent of the damage, the value of the stock and the business interruption loss. In companies with many smaller events, such as fleets, the same deductions may be repeated across claims.
Underinsurance is another recurring issue. If the insured sum is lower than the real value, the payment can be reduced proportionally. Whether replacement (reinstatement) value is paid depends on the policy wording and its conditions. After a fire, see our guide to fire damage insurance claims.
Records that support the claim
A business claim usually depends heavily on records. Stock counts, purchase invoices, asset registers, maintenance logs and management accounts often matter as much as photos of the damage. A stock valuation built from orderly records is easier to support than one reconstructed months later.
An insurer's assessor's report is a professional opinion, not a ruling, and the company may obtain its own. Our guide to public adjusters in Israel explains how an independent assessor fits into the claim.
One channel for every event
Companies with recurring claims may find a single channel useful. Each event is logged, the documents follow a fixed list, the correspondence with the insurer is handled by one person, and repeated deductions are noted across files so they can be reviewed together.
Your insurance agent can stay in place. The agent handles the policy and renewals; we step in where there is a dispute about a claim.
How we work with companies
We represent policyholders only. Adv. Sassi Lev previously represented insurance companies. We work in English and in Hebrew, with legal, finance and operations teams in Israel and abroad. For an overview of property claims, start with our guide to a property damage lawyer in Israel.
An insurer is generally expected to pay benefits that are not in dispute within 30 days, and the limitation period for an insurance claim is generally three years from the insured event, though some policies differ. To begin, send on WhatsApp: the policy and policy schedule, the insurer's letter or payment notice, the assessor's report if there is one, and a short description of the event with dates.
Questions people ask
Is business interruption covered automatically?
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Usually not. Business interruption and loss of profits are generally covered only if that part of the policy was purchased, and on its conditions. Check the policy schedule.
We already work with an insurance agent. Is that a conflict?
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That depends on the circumstances. The agent handles the policy and renewals. We step in when there is a dispute about a claim, and the agent stays in place.
What does underinsurance mean for our claim?
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If the insured sum is lower than the real value, the payment can be reduced proportionally. The policy wording and the valuation both need to be checked.
Our management is abroad. Can you work with us in English?
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Yes. We work in English, read the Hebrew documents for you and explain the policy and the insurer's position in writing or on a call.
Have a document from the insurer?
A denial letter, a payment notice or an assessor's report. Send it on WhatsApp and we will come back to you with the next step.
Sending material does not create an attorney–client relationship.