When you purchase commercial insurance to protect your business, you expect to be able to rely on your coverage. Through fire, flood, theft or other damaging events, your insurance policy is a contract you should trust. What happens when your commercial insurance company decides to deny your claim?
Insurance Companies Don’t Expect You to Fight Back
Most insurance companies process claims expecting that the business on the receiving end of a denial won’t try to fight it. They may attempt to minimize your claim or narrowly interpret your policy to refuse your claim. Without understanding your policy, your rights and the steps you can take to fight back, you may find yourself throwing your hands up or wanting to simply throw in the towel.
What to Do After Your Insurance Claim Is Denied
If you’ve received a denial for a commercial insurance claim, it doesn’t necessarily signify the end of the line. There are several steps you can take to fight back, ensuring you do everything in your power to pursue your claim.
Understand why your claim was denied. It’s important to read the notice you receive carefully to outline the reasoning behind your insurance company’s decision. For instance, they may dismiss your claim because you failed to submit it on time, the event you’re seeking coverage for isn’t a covered loss or they believe your claim is fraudulent.
Examine your policy. Carefully examine your policy for covered events, time limits and procedures.
Write an appeal. If you can’t find any indication as to why your insurance company denied your claim, you can choose to write an appeal letter. Use the space to outline your argument based on your policy and provide any supporting evidence. The appeal you write may make or your break your ability to receive reimbursement, so you may want to work with an attorney to draft as persuasive of an appeal as possible.
Move forward towards litigation. If the company still denies your claim that you believe your policy covers, you can choose to sue your insurance company. Consider calling a professional commercial insurance attorney to help you decide if this is the next best step for you.
You Don’t Have to Accept an Insurance Claim Denial
Most business insurance claims involve loss, whether monetary, physical property or both. If your claim is denied, you don’t have to simply succumb to your losses. To learn more about fighting back after a claim denial, send us a message.
