For a regular person, these three terms would seem identical. They are indeed related but there’s a fine line between what an incident, what a loss, and what a claim is. These terms may be interchanged by a regular person. However, for those in the insurance industry, the three words are seen as different terms with very technical definitions.

Incidents to Claims

An incident is a happening of an event that may result in a loss of property or damage to property. This could even apply to a person. A good example would be when you are hit by a car because the car is speeding. Normally, the first thing to do will be to contact 911 or the nearest hospital. Once settled in, the next to contact will be your insurance provider or your healthcare provider. It is important that when notifying these companies, that you provide all the details necessary and related to the incident. This is not yet considered a claim. You are just informing your provider that you got caught in an accident that caused you harm.

The person who can ultimately file a claim would be your boss if you are employed, or your spouse if you are married or it could be the hospital. In this stage, this is where claims are formally filed. This is when the insurance company or your healthcare provider would cover your payments and costs depending on what was agreed upon in the policy. 

Claims are normally done through manual filing. This would mean the policy owner would be writing forms and filling them out with repetitive details or information. However, with the advancement of technology and the brains of software programmers, we now have online tools which allow end-users to file their claims anywhere in the world. 

Losses and Injuries

Loss usually comes from damages and injuries sustained by the policy owner. The difference between a loss and an incident is that the former would lead to an actual financial loss. Normally incidents affect the physical state of the policy owner as compared to loss which is more of an operational matter. 

Loss is usually attached to business or income loss. Business owners would pay for insurance in order to help with their cash flow. As the economy is unpredictable, owners would rely on insurance in order to have a safety net. 


The world has continuously evolved and thus filing claims has been made easier. Whether it be an injury-related claim or a loss claim, it can be done at your fingertips. Laptops, tablets, and even smartphones have now the capability to file claims. A1 Enterprise has helped hundreds of companies to allow better user experience, especially in information gathering. Filing claims has never been easier. 

Are you still stuck with traditional methods? Contact us now and schedule an appointment with our team to have a personalized demonstration of our software.