July 1, 2024
Pearson Legal

From Denial to Recovery: Strategies for Business Owners Facing Denied Insurance Claims

Dealing with a catastrophic business loss is bad enough, but facing a denied insurance claim can be even more aggravating. On top of losing revenue due to disruptions to your business, you may face the possibility of paying out of pocket for repairs you expected to be covered by insurance. The financial pressure can be overwhelming, particularly if you do not have cash on hand or easy access to credit. Fortunately, you can take steps to protect your company in this situation. If you are overwhelmed and unsure what steps to take, an experienced insurance recovery lawyer who works for policyholders can help you find the best way forward.

Be Proactive

After suffering a significant loss, staying proactive and focusing on your claim while trying to get your business back on its feet can be incredibly challenging. You may need to relocate inventory, offices, or other facilities or purchase new equipment or supplies – the list of things demanding your attention is likely long. It is natural for your insurance claim to get shuffled to the bottom of the list to be dealt with later, but if you don’t act urgently, you could delay or even jeopardize your claim by missing important information or deadlines.

To protect your business, you must take immediate action when you receive any communication from your insurance company or its adjusters. Don’t leave an email or letter for later. Answer the phone and promptly return any voicemails. Provide all requested information and documentation expeditiously.  A slow response on your part may cause delays in receiving the compensation you need.  Taking quick action is more likely to lead to a favorable recovery of insurance benefits so you can get back in business quickly.

Carefully Review All Correspondence

It is also essential to carefully review any written communication from your insurance company or its adjusters. The notices you receive may contain important instructions, an explanation of your benefits, or other information that may be critical for approving your claim. Start a file of all correspondence and document all telephone calls and other communications with the carrier or its representatives. 

The decision letter from your carrier should explain whether it has denied your entire claim or only part of your claim.  It may explain that the claim has been delayed pending your submission of additional information or documentation. Whatever the case may be, the letter should also explain why the insurance company made the decision it did. The explanation provided can grant valuable insight that may be useful later. For example, the letter may include information showing that the claim was improperly documented or was denied due to an administrative error.

Unfortunately, insurance correspondence can often be challenging to decipher for anyone who isn’t an insurance professional. Do not hesitate to contact an experience insurance recovery lawyer if you have received a denial of your claim and have questions about your insurance company’s decision or coverage position.

Follow Up and Ask Questions

It is essential to be persistent. Do not hesitate to contact the insurance company and discuss why they denied your claim. Ask plenty of questions to clarify their position and take notes of what is discussed during the conversation. If your claim was rejected because of an error or mishandling by the insurance company, your call and your questions may prompt them to look at your case more closely and make the necessary corrections. These extra steps could save you considerable time and effort spent on the appeal process.

Get Professional Help

You may need professional assistance if your insurance company denies or underpays your claim.  You can speak with an attorney experienced in representing businesses in disputed insurance claims. An attorney at Pearson Legal PC can help you get your claim approved and can handle correspondence and other issues so that you can focus on running your business.

Denied or Underpaid Insurance Claim? Contact Pearson Legal, P.C. Today

If you have suffered a loss to your existing property or one under construction, don’t let your insurance company hide behind the claims process or confusing policy language. Contact us to learn more about your options and rights in an insurance recovery dispute.