First Notice of Loss: What to Do in the First 72 Hours (Faculty of Insurance lens)

A restaurant owner in Belleville, Ontario arrived at her establishment in March 2024 to find the rear portion of the 4,500-square-foot premises destroyed by an overnight kitchen exhaust fire. Smoke and water damage extended throughout the building. The business had operated for 11 years under a commercial lease, insured through a national carrier with $850,000 in property coverage and $300,000 for business interruption.

In the hours following the loss, the owner authorized a restoration contractor to begin emergency work before notifying her insurer, signed an authorization permitting the contractor to communicate directly with the insurance company, provided a recorded statement within 36 hours without reviewing her policy, and disposed of spoiled inventory on a health inspector's advice before documentation. The insurer acknowledged the claim but reserved rights, citing concerns about the sequence of events and available documentation supporting the claimed losses.