What is an Insurance Claim

An insurance claim is a formal request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event. The insurance company either validates the claim or denies the claim. If it is approved, the insurance company will issue payment to the insured or an approved interested party on behalf of the insured. A paid insurance claim serves to indemnify a policyholder against financial loss. An individual pays premiums as consideration for the completion of an insurance contract between the insured party and an insurance carrier.