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Why is an insurance company denying your business’ claim?

On Behalf of | Feb 19, 2024 | Insurance Disputes

You worked hard to establish your business or to bring it to a place where it is profitable. It may feel as if your efforts were for nothing when a disaster strikes your New York business. A fire, flood or other type of catastrophic event could be devastating, but you believe that your insurance coverage will help you get back on your feet. You may experience additional devastation when your insurance claim comes back denied.  

It is important to remember that insurance companies do not have your best interests in mind. They are solely concerned about their bottom line, and even if you believe that you have a valid claim, that does not necessarily mean that the insurance company will agree. It may be helpful to learn about why insurance companies often deny claims and how you can fight for the recovery you deserve after an incident. 

Common reasons for a claim denial 

Insurance companies will often look for any possible reason to deny a claim. While there are times when there is a valid reason to deny a claim, a closer look at the situation may reveal that the denial is wrongful. If you suspect that this is what happened to your business, it might be helpful to seek an understanding of why insurance companies deny claims. Some of the most common include: 

  • You did not file the claim on time — There are time-sensitive requirements for filing the paperwork and submitting evidence. 
  • False or questionable claim — The insurance company states that the reason for the claim is questionable, or evidence does not line up with statements made in the claim. 
  • Insufficient documentation — If there is insufficient documentation, the insurance company may deny the claim for lack of proof. 
  • Non-payment of premiums — If there is no evidence that the claimant has paid premiums in the full amount or in a timely manner, it could lead to a denied claim. 

If you believe that the insurance company wrongfully denied your claim, you do not have to remain silent. You will benefit from seeking the insight of an experienced professional that understands insurance laws and knows how to fight back. With this support and guidance, you can seek to hold insurance companies accountable for unfair practices and fight for the recovery your business needs to move forward after a loss. 


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