You pay your insurance coverage on time to protect your construction company from major liability. Then an accident happens and you have to make a claim. After waiting for weeks, instead of a check, you get a letter in the mail or an email saying your claim is denied. There are several reasons this could have happened.
In this article, a construction lawyer in Franklin, TN explains why your insurance claim might have been denied.
The Claim Was Not Timely
Depending on your liability policy, the timing in which you report your claim can mean the difference between receiving coverage or not. If you have claims-made insurance, you have to make your claim while your insurance policy is active or during the extended reporting period.
The Incident Type Was Not Covered
Because insurance policies vary, not all incidents are covered under each policy. For example, some general liability policies do not protect the insured from damage related to flood water. In that case, the insured would need separate flood insurance to cover the damage.
The Insurer Suspects Fraud
In some claims, the damage may seem too convenient. If there were already problems on the jobsite and then, for example, a fire claimed the troubled structure, the insurer may claim that the destruction was not an accident.
The Coverage Limits Were Exceeded
Any claims paid out in the policy duration will count toward your coverage limits. Your policy’s terms determine how much your insurance company will pay per incident and in total for your claims over a period. If your coverage limits have been met, it’s worth taking a look at any supplemental coverage you have.
Steps To Take After a Claim is Denied
After your claim has been denied, drafting a response is your next step. Reading over your policy and explaining the relevant facts of your situation are key. Sometimes the response is not enough and you need to enter litigation to get your claim paid. An experienced attorney can help you secure your insurance payment.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.