Assertive, Intelligent Representation For Public & Private Entities

What if my business insurance claim is denied?

There are many potential risks to owning a small business: A customer could be injured on the premises; shoplifters could steal valuable merchandise; a natural disaster could cause expensive property damage. Smart business owners know to buy insurance to protect themselves so that if a worst-case scenario occurs, your business will be covered by its policy.

But what if your insurance company denies your business insurance claim? If this should happen to you, the financial toll on your company could be irreparable. In the event that your insurance provider tries to deny your claim, these are some of the steps that you should follow.

Identify the reason for denial

The first step you should take is to review the notice of denial and identify why your business insurance claim was denied. Some of the main reasons why an insurance provider may deny coverage include a claim that is not timely, an incident that is not covered by your policy, the insurance company suspects fraud or your limit for coverage has already been met.

Respond to your insurer

After determining why your claim was denied, begin preparing a response to your insurer in the form of an appeal letter. In your appeal letter, address the facts of your claim and persuasively state your argument for coverage. Include any additional evidence you have that supports your position.

Await your insurer’s decision

After submitting your letter of response, your insurance company will contact you to reverse its decision regarding your business insurance claim, or to stand by its original denial.

Consider legal action

If your insurance provider stands by its denial of coverage, your only recourse may be litigation. If your insurer is failing to meet the terms of the contract that it entered with you, you may have grounds for a lawsuit in order to get the business insurance coverage you need. To start the litigation process, contact a local attorney who specializes in insurance law.