Quick answer
If your business insurance claim is delayed, ask the insurer in writing what information is outstanding and when a decision will be made. Under the General Insurance Code of Practice, subscribing insurers generally commit to a decision within four months and updates at least every 20 business days. If the delay is unreasonable, complain to the insurer, then to AFCA (1800 931 678). Meanwhile, fund the timing gap with a loan repaid from the payout.
Key points
- Ask for a written list of what's outstanding — then supply it in one go.
- Code timeframes: information requests within 10 business days, updates every 20 business days, a decision generally within four months.
- AFCA offers free, independent dispute resolution for small businesses.
- A bridging loan should be sized to the wait, not the claim.
- Insurer updates
- At least every 20 business days (Code)
- Usual decision window
- Within 4 months of the claim (Code)
- Complaints
- AFCA 1800 931 678
- Property-secured funding
- $20,000 to $5,000,000
A delayed insurance claim is a crisis that grows quietly. The flood or fire was weeks ago, the premises are half-repaired, and every week the insurer asks for one more document. Meanwhile rent, wages and suppliers are due on the usual dates.
The good news: there are published timeframes, a free complaints path and practical ways to fund the wait. The “Insurance claim delay” option in our emergency action checklist turns this page into a list you can tick off.
What timeframes apply to insurers?
Most general insurers in Australia subscribe to the General Insurance Code of Practice, published by the Insurance Council of Australia. The version in force was last updated in October 2023, and a redrafted code has been out for consultation during 2026. Key claims-handling commitments include:
| Commitment | Timeframe |
|---|---|
| Tell you what information they need | Within 10 business days of receiving your claim |
| Update you on progress | At least every 20 business days |
| Decide once they have everything | Within 10 business days |
| Overall decision | Generally within four months of your claim |
There are exceptions, and very large events can stretch things. Check whether your particular policy is covered — some business and wholesale policies sit partly outside the Code.
What should you do today if your claim has stalled?
- Email your claims contact asking three things: what information is outstanding, who is waiting on whom, and the expected decision date.
- Send everything they’ve asked for in one bundle, with a numbered index. Half the delays we see are documents trickling in.
- Keep a claim diary — every call, email, name and promise, with dates.
- Ask whether a partial or interim payment is possible for undisputed items such as stock or emergency repairs.
- Check your business interruption section. Some policies cover increased costs of working, such as hire and temporary premises, which may be claimable now.
When should you escalate to AFCA?
If the insurer misses its own timeframes or can’t explain the delay, lodge a formal complaint through its internal dispute resolution process first. If that doesn’t fix it, the Australian Financial Complaints Authority (AFCA) offers free, independent dispute resolution for consumers and small businesses. Call 1800 931 678 or lodge online. Our page on insurance complaints covers how to prepare.
business.gov.au also recommends filing claims immediately after an emergency and escalating complaints to AFCA where needed.
How does a delayed claim affect cash flow?
A claim delay doesn’t just postpone one payment. It stalls repairs, which stalls trade, which stalls everything else.
| Knock-on effect | Practical fix |
|---|---|
| Builder won’t start without a deposit | Short-term funding repaid from the payout |
| Stock can’t be reordered | Unsecured working capital sized on bank statements |
| Staff rostered off | See paying staff through a crisis |
| ATO due dates approaching | Call the ATO before the due date to discuss options |
| Landlord wants rent | Ask about rent relief under the lease; document the conversation |
If the numbers are getting tight, start a quick enquiry — a real person will look at the timing gap with you, and asking doesn’t involve a credit check.
How do businesses fund the wait for an insurance payout?
The cleanest structure is a short-term loan sized to what you need before the payout arrives, with a clear exit: the claim settlement.
- Property-secured bridging — first or second mortgage, or a caveat loan, over residential or commercial property. From $20,000 to $5,000,000. This is the most common route because it doesn’t depend on this month’s trade. See property-secured emergency funding.
- Unsecured cash-flow funding — typically $5,000 to $500,000, if you’re still trading and your bank statements support it.
- Covering a shortfall — if the payout won’t cover everything, read the underinsurance gap.
Property-secured amounts of $20k to $250k are possible same day, and up to $5m is possible within 24–48 hours, depending on the security and documents.
Illustrative example only: a restaurant’s fit-out claim after a storm is accepted in principle, but the insurer is waiting on a second builder’s quote. The owner takes a three-month second mortgage over the family home to pay the builder’s deposit and reopen, then repays it when the claim settles.
What mistakes slow a claim down further?
- Drip-feeding documents. Each new item can restart someone’s review. Send one complete bundle.
- Arguing by phone only. Put every request and complaint in writing so there’s a record.
- Starting permanent repairs without approval. Emergency make-safe work is expected; a full rebuild before the insurer agrees can create disputes.
- Discarding damaged items the assessor hasn’t seen. Photograph and ask first.
- Letting the ATO or landlord find out late. A short call before a due date keeps more options open than an apology afterwards.
Which documents speed everything up?
- Policy schedule, wording and claim number
- A numbered bundle of everything the insurer has asked for
- Your claim diary
- Quotes and invoices
- Bank statements showing normal trade before the event
- Any partial payment or acceptance letters — lenders find these very useful
Ready to stop waiting on the money?
A slow claim shouldn’t decide whether you reopen. A short bridge, repaid from the settlement, is often the cleanest answer.
An enquiry doesn’t touch your credit file; that only comes up if you choose to go ahead. You won’t get a wave of calls from lenders you’ve never heard of, because we don’t pass enquiries around. A specialist looks at your situation properly before picking up the phone.
Accurate details on the form (amount, purpose, state, any property) are what let us match you properly on that first call. Tell us what happened.
Frequently asked questions
How long does an insurer have to decide a business claim?
Under the General Insurance Code of Practice, subscribing insurers generally aim to decide within four months of receiving a claim, and within 10 business days once they have all the information they need. Some exceptions apply, and large catastrophe events can extend timeframes. Check whether your policy is covered by the Code.
What can I do if my claim is taking too long?
Ask in writing for the reason, what's outstanding and an expected decision date. If you're not satisfied, make a formal complaint through the insurer's internal dispute process. If that doesn't resolve it, AFCA provides free, independent dispute resolution for consumers and small businesses.
Can I borrow against an insurance claim?
Lenders don't usually lend against the claim itself, but they will consider a short-term loan where the claim is accepted or likely and repayment will come from the payout. Property security makes this much more straightforward.
Will taking a loan affect my insurance claim?
No — borrowing to keep trading doesn't reduce what the insurer owes under the policy. Keep receipts for costs the policy may cover, such as extra expenses under business interruption, because they may be claimable.
What if the insurer denies the claim?
Ask for the reasons in writing and the policy clauses relied on. You can complain internally and then to AFCA. If you still need to fund repairs, look at the underinsurance and property-secured options on this site.