Yes, you can often appeal a denial or contest a decision made by your insurance provider. Your business likely carries multiple layers of commercial insurance, property insurance and other such policies. You may need to file a claim after significant property damage or financial harm, especially if it hinders your business’s ability to operate and you need to have the repairs made quickly.
If these claims are submitted and then denied, you often have a chance to challenge that denial. It is very important to read the documentation carefully to see why the initial claim was denied, as this can indicate ways to rectify the issue and get the payment that you are due.
Why are claims denied?
For instance, one of the top reasons for claim denials is insufficient documentation and evidence. Maybe the pictures or videos that you submitted do not properly show all of the damage to your business. The insurance company is denying the claim, but submitting additional documentation may get them to approve it.
It’s not that you don’t have a valid claim, but that they need more evidence to support it.
Another common issue can be unpaid premiums. Perhaps the insurance company claims that your policy actually lapsed because you missed necessary payments, so they are not going to cover your claim. If you can submit evidence of payments or electronic transfers demonstrating that you were actually current on your premiums the entire time, this can get them to authorize that payment.
The exact reason for the denial is going to be unique from case to case, but it is important to remember that you often have options to appeal it. You need to know what legal steps to take.