When to Hire an Insurance Recovery Lawyer

When businesses and other property owners purchase insurance policies, the insurance companies have a way of making them feel secure that they are covered for any event. Unfortunately, this isn’t always the case. In the event of a large loss, the claim process is often more complex than policyholders anticipate, and adjusters implicate policy limitations and exclusions to minimize or deny coverage. The bottom line is that it’s never too early to contact a lawyer if you suspect your insurance company isn’t compensating you fairly for your loss.

Many insurance companies retain counsel early on to assist with significant or catastrophic losses behind the scenes. You should consider leveling the playing field by hiring your own counsel to assist with your loss either directly or in a consultation capacity.

If You Have Suffered a Catastrophic Loss

The larger the loss, the more likely your insurance company will try to minimize their payments to you. This means you could suffer underpaid or wrongfully denied losses resulting in significant financial hardship. Whether you are a small or large business owner, if your property has suffered considerable damage, the best thing to do is be proactive and engage an insurance recovery lawyer as soon as possible.

Examples of situations in which you should consider hiring an insurance recovery lawyer include the following:

The loss will significantly disrupt your business operations;
The valuable stock, equipment and/or other assets of your business are damaged;
Your premises are unsafe for occupancy; or
You have suffered significant losses due to natural disasters such as wind, fire, flooding, or earthquakes

There is no specific dollar amount or other criteria for determining whether you have suffered a catastrophic loss. You have the right to seek legal counsel at any time if you are worried about the financial impact of a property loss. Ultimately, you do not need to leave your claim entirely in the hands of your insurance company. You are free to determine when you think it is appropriate to seek legal counsel.

If Your Insurance Company Denies Your Claim

A denial of coverage is always an unpleasant surprise. The insurance company may cite various reasons for denying the claim, including specific exclusions in your policy or the fact that your policy doesn’t cover losses caused by certain events. Unfortunately, many property owners take the insurance company’s word for it, give up on pursuing the compensation they deserve under their policy, and cover their losses out of their own pocket.

The insurance company doesn’t get the final say as to whether your claim should be covered. Your policy affords you multiple avenues to challenge the insurance company’s claim decision. Insurance companies are for-profit organizations that often attempt to minimize payments or deny claims in order to protect their profit margins. It is critical that you take swift action if your claim has been denied. Contact an insurance recovery lawyer for help.

If Your Insurance Company Delays Processing Your Claim

While insurance claims involving significant losses can be complex, your insurance company should be diligent in moving the claim toward a resolution. Unfortunately, when you have suffered a significant loss, it can often feel like your claim has disappeared into a black hole with no resolution. If you are experiencing any of the following situations, it may be time to call an insurance recovery lawyer:

The insurance company has not even acknowledged receipt of your claim;
The insurance company has not yet sent an adjuster to determine the extent of the loss;
The insurance company continues to request more and more information and documentation; or
The insurance company has accepted the claim but has not decided how much they will pay to repair your property.

Insurance companies engage in these delay tactics for a variety of reasons – sometimes, they are simply mismanaging the claim, and other times, they are deliberate. Regardless of the reason, you are entitled to a prompt resolution of your claim and you should not hesitate to contact an attorney if you are experiencing unreasonable delays.

If Your Insurance Company Refuses to Cover All of Your Losses

You should also contact an insurance recovery lawyer if your insurance company refuses to cover all your losses. They may cover portions of your damage like the exterior of your building, but not the most important part—the roof. They may cover property damage but refuse to cover your business losses. Whatever the case may be, a partial denial of your claim can be a frustrating situation.

Insurance policies are complex legal contracts that are often very difficult for anyone other than an insurance professional to understand. Most people have a general idea of what is covered (and what is not) when they purchase their property policy, but as the years pass, they forget the details. As a result, your insurance company has a distinct advantage in the event of a claim – they know your policy far better than you do.

One of the services an insurance recovery lawyer can provide is to review your policy to determine what losses should be covered. You would be surprised by how often they can help you recover additional compensation.

If Your Insurance Company Refuses to Pay the Full Value of Your Claim

Closely related to partially denying your claim, it isn’t unusual for insurance companies to lowball the value of policyholders’ claims. For example, insurance companies sometimes undervalue claims as follows:

They prepare their cost of repair estimate using lower-quality materials;
They undervalue your belongings, equipment, or stock that were damaged; or
They calculate an excessive amount of depreciation.

If you believe your insurance company is not offering to pay full and fair value for your claim, you should contact an insurance recovery lawyer as soon as possible.

The Sooner You Contact an Insurance Recovery Lawyer, The Sooner They Can Help

Deciding to hire a lawyer is a big decision, but at Pearson Legal, P.C., we try to make the process as painless as possible. That’s why we offer free consultations to anyone who has questions about their insurance claim. Contact us today to schedule a free consultation to discuss your case and the options available to you.