Business owners often focus on the scope of protection offered by their insurance policies. However, they shouldn’t also neglect the importance of policy exclusions in their insurance. Policy exclusions can have significant consequences for a business in the event of a claim.
Common types of policy exclusions
Policy exclusions can either restrict or eliminate insurance coverage for certain claim types. Common policy exclusions in business insurance include:
- Expected or intended injury
- Contractual liability
- Liquor liability
- Workers’ compensation
- Pollution
- Aircraft, auto or watercraft
- Damage to property
- Employment-related practices
Not all of these exclusions appear on insurance policies. It’s important for business owners to review all the possible exclusions written into their insurance contracts.
Legal disputes arising from policy exclusions
When an insurer denies a business owner’s claim due to a policy exclusion, legal disputes may arise. These disputes can involve:
- Breach of contract claims: The policyholder may argue that the insurer has breached the insurance contract by denying a claim that should be covered under the policy.
- Bad faith insurance practices: The policyholder may allege that the insurer has engaged in bad faith practices, such as delaying or denying a claim without good reason or failing to thoroughly investigate a claim.
- Coverage disputes: The policyholder and insurer may disagree on the interpretation of policy language and whether a particular claim falls within the scope of coverage.
When a dispute arises, it is essential for business owners to have complete documentation of their communications with insurers and detailed records of the events leading to the claim. Documentation is important because it can be used as evidence should the business owner bring the case to court.
In such cases, an experienced attorney may be able to help business owners with their insurance disputes.
The role of attorneys in navigating policy exclusions
Attorneys can help business owners in several ways should an insurance dispute arise. They can help:
- Interpret complex policy language
- Identify potential ambiguities in the insurance contract
- Advise business owners on their rights and obligations under their insurance contracts
In the event of a coverage dispute, attorneys can represent business owners in negotiations with insurers. As legal representatives, attorneys will fight for their clients’ right to their claims.
To minimize the legal risks associated with policy exclusions, attorneys can also help business owners implement proactive strategies. Proactive legal strategies and ongoing risk management efforts can help businesses secure the coverage they need while avoiding costly legal battles.
By working closely with experienced attorneys, business owners can better understand their policies and fight for their claims. Lawyers can also help business owners mitigate legal risks and protect their companies in the event of a disputed claim.