If you run a business and have business insurance, you trust that your insurer will pay out when something goes wrong. Insurance policies may be written in a way that is difficult to understand, but your policy limits and benefits should have been explained to you when you took out the policy you decided on. If an insurer made you believe that something would be covered by your policy but then rejects your claim later down the line, it’s fair to ask that they reconsider. If they do not, then you may have a bad faith claim.
Denied insurance claims may negatively impact your business
Your commercial insurance policy should cover the risks your business faces. Whether you’re dealing with fire damage on your property or are trying to clean up after a natural disaster, your policy should be clear about what is or is not covered. If you make an insurance claim for something you believe should be covered but are denied the compensation you need, you could end up frustrated and having to deal with an interruption in your business.
What do you need to do if your commercial claim is denied?
The primary thing to do is to go over the denial to determine the cause. The insurer should provide you with a detailed explanation of why your claim cannot be paid out. That might include that your policy doesn’t cover flood damage or that the company doesn’t believe that the damage was caused accidentally.
Once you know why the claim was denied, you can talk to your attorney about your options for appealing. You may need to gather more evidence, such as information about a storm that came through your area, photos of the damage to your property and witness statements.
Once you have the appeal put together, you can submit it to the insurance company for review. If your claim is denied yet again, go over the original contract and your policy to be sure you understand your limits and coverage. If your claim was denied unfairly, you may be able to look into making a bad faith insurance claim against the company.