New York business owners sometimes ask their insurance companies to compensate for a loss. When preparing to navigate the process, they’ll want to make sure they have gathered sufficient evidence to prove the legitimacy of their need. The process itself is known as filing a commercial insurance claim. It’s not uncommon for such claims to receive a denial, however, which is why business owners will want to learn more about the options they have for resolving that issue if it arises in their case.
A denied commercial insurance claim can have both immediate and far-reaching adverse effects on a business. If a business has suffered a substantial loss due to a fire, theft or some other issue, the ability to stay afloat might hinge on the ability to collect compensation for damages through insurance. A claim denial could bring operations to a screeching halt.
Make sure your commercial insurance claim is clean
For a commercial insurance claim to be clean, it must be free from errors and omissions. If an insurance company says a claim is “unclean,” it means something was missing or defective in the application. If this is the case, the insurance agency might include instructions for how to resolve the issue and resubmit the request.
A business owner can appeal a claim denial
If a commercial insurance claim was clean and has been unreasonably denied, a business owner can file an appeal. Every state and insurance company has its own guidelines regarding the appellate process. A commercial insurance claim might be essential to keeping a business going following a disaster that has caused major property damage or financial loss. By reviewing state laws ahead of time and learning as much as possible about the claims and appeals processes, there is less chance for legal complications.