The last thing any business owner wants to deal with is a dispute with an insurance company. You chose your insurance company carefully because you thought that it would cover you when you needed it most. Now, you’re dealing with a denial of your insurance claim and losses from your situation.
There are a few common reasons for commercial insurance disputes, including:
1. Poor communication
If your agent doesn’t understand the situation or you can’t explain it clearly, a communication problem could lead to a denial of your benefits. On top of this, not communicating regularly throughout the life of your insurance plan can cause problems, too. You should regularly update your insurance coverage and make sure it still fits your needs. At minimum, make sure to review your coverage each time you renew it.
2. Loss assessments
Loss assessments can cause problems because of varied opinions on the value of incurred losses. For example, if your company goes through a fire, one valuation may show you lost $10,000 worth of products while another suggests only $7,000. You’ll also have projected losses as you await the repair of your business. You and the insurance company may have different opinions on the value of what’s lost, so finding common ground could require arbitration or litigation.
3. Coverage limits and exclusions
Any time you have an insurance policy, it’s necessary to know your coverage limits and exclusions. If you have questions about the wording of your policy or need to understand the scope of coverage, you should speak with an agent. Also, make notes of his or her name and identifying information and clarify everything. Keeping the agent’s name is important in case he or she misleads you or misinforms you about your coverage benefits and exclusions and impacts your future claim.
These are a few things that could lead to a battle over your coverage limitations and insurance claim. It’s a good idea to keep your policy documents close at hand so you can refer to them if you have questions or concerns. If the insurance company is not following through on its responsibilities, it’s within your rights to take it to court.