Get Claims Report - Insurance Journal

Key Takeaways: A CLUE report shows your claims history for the past seven years. Most car insurance companies keep your claims on record for three to five years. Learning what's in your claim history can help you know what sort of rates to expect when you search for a new insurance policy.

The following journal entry can be used to record the insurance claim: Debit: Insurance Claim Receivable (Assets) - Increase in the amount of insurance claim receivable. Credit: Loss on Damaged Goods (Expenses) - Record the loss incurred due to damaged goods.

The following journal entry can be used to record the insurance claim: Debit: Insurance Claim Receivable (Assets) - Increase in the amount of insurance claim receivable. Credit: Loss on Damaged Goods (Expenses) - Record the loss incurred due to damaged goods.

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 validates the claim and, once approved, issues payment to the insured or an approved interested party on behalf of the insured.

At minimum the letter should include information about the accident, the policy number, the date of loss, and the amount claimed. Some insurance companies will take this information over the phone others will require it in writing.

Bookkeeping for an insurance payment for a claim not related to a fixed asset is straightforward. Record the repair expenses as you normally would. And once you deposit the insurance check, instead of crediting an income account, credit the repair expense account.

The payment made by the company is listed as an expense for the accounting period. If the insurance is used to cover production and operation, then the insurance expense can be listed in an overhead cost pool and divided into each unit produced during the period.

A basic insurance journal entry is Debit: Insurance Expense, Credit: Bank for payments to an insurance company for business insurance. Not all insurance payments (premiums) are deductible* business expenses. Some insurance payments can go on to the Profit and Loss Report and some must go on the Balance Sheet.