15 Possibilities Why Your Business Insurance Can Be Denied

Can’t Figure Out Why Your Business Insurance Claim Was Denied? Here Are  15 Possibilities Why.

It’s devastating enough when your business suffers from damage or loss. When your insurance doesn’t cover the incident, the situation becomes more frustrating. Walk away from this article understanding the reasons why this may occur and how you can prevent it.

Why Was Your Insurance Claim Denied?

Unfortunately, there are many reasons your insurer may deny your claim:

1. Filing your claim outside the limitations period.
2. Failure to pay your premium in time.
3. Lack of evidence to support your claim.
4. You were improperly maintaining your business property. If you suspect warning signs of damage, like interior leaks, you must investigate and fix the problem.
5. Failure to submit a Sworn Proof of Loss, a detailed statement surrounding the event with the value, and list of items damaged.
6. Failure to submit an Examination Under Oath (EUO). This is a recorded statement on the event.
7. Your policy doesn’t have the right kind of coverage for your claim. Policies only include specific losses; for example, some don’t cover cyber liabilities.
8. Your claim is fraudulent or intentional. In addition to denying your claim, consequences can include criminal charges, fines, or imprisonment.
9. Your loss is excluded from your policy.
10. Your policy lapsed, expired, or canceled.
11. You are misrepresenting the risks of your startup.
12. You exceeded your policy’s coverage limit. Sadly, sometimes, losses cost more than the coverage limit.
13. Providing inaccurate or incomplete information on the insurance application.
14. You are making unapproved modifications to your operations or property. For example, you shouldn’t make renovations without informing your insurer first.
15. You have a policy that only covers direct losses rather than consequential losses after peril.

Get Help from Professionals To Protect Your Business.

If your claim is denied, you may dispute the decision with assistance from an insurance agent or take legal action with a law firm. Furthermore, if your insurance company cancels your policy without notifying you in writing, a property insurance attorney can help you dispute the cancelation.

You may collaborate with professionals to prevent denials, as well. An attorney can help you manage the claim, avoid missing deadlines, and losing money. Additionally, a financial planner or accountant can thoroughly maintain accurate records, an essential part of approving claims.

Make a FREE REQUEST on GetAssist’s Business Directory or in the request box above for a local professional, such as an insurance agent, accountant, financial planner, or lawyer, to guide you through business insurance-related matters. Our Business Directory includes professionals in Canada and the United States.

Ensure you understand your insurance policy to be ready for emergencies.