Proof of Loss

A proof of loss is the signed, often notarized document in which a policyholder formally states what was lost, how much it was worth, when and how the damage occurred, and the amount of money being claimed under the policy. Most first-party property policies require it, and the form typically asks for the policy number, date and description of the loss, the value of the damaged property, other insurance in force, and the interest of any loss payee or lienholder. It is signed under oath, which is why an insurer can later challenge a claim as fraudulent if the sworn figures are knowingly inflated.

For a small-business owner, the proof of loss matters because it is a condition precedent to payment: most policies require it to be filed within a set window (commonly 60 days after the insurer's request), and missing that deadline can give the carrier grounds for a coverage denial even on an otherwise valid claim. It also frames the dispute — the dollar figures you swear to establish the baseline the adjuster negotiates against, and a rushed or incomplete valuation can leave money on the table. Attach invoices, receipts, repair estimates, and photos to support every number.

A practical nuance: submitting a proof of loss is not the same as your first notice of loss, which merely reports that something happened. The proof comes later, once you have quantified the damage, and it can trigger the insurer's right to demand an examination under oath. If you and the carrier disagree on the amount but not on coverage, many policies let either side invoke the appraisal clause to resolve the valuation. Sign the proof of loss carefully, keep a copy, and never accept an adjuster's blank or pre-filled form without confirming the figures are yours.