Any number of events can cause an interruption in a person’s business. These intrusions can have a devastating effect on a business’s bottom line and negatively impact customer relations and vendor contracts.
To mitigate these damages, many business owners choose to purchase business interruption insurance. These policies are intended to reimburse companies when they suffer a loss of revenue due to accidents that are out of their control. Unfortunately, though, the process for filing a claim and collecting payments can be complicated, and insurance companies often make profits by denying claims whenever possible.
A proficient insurance denial attorney can help you demand on behalf of your business that insurance companies honor their policies and pay claims by authoring demand letters and if necessary, taking the case to court. Get in touch with a Los Angeles business interruption insurance denial lawyer today.
Business Interruption Insurance Defined
Every business interruption insurance policy is different depending on the needs and nature of the business it covers. Typically, a policy will reimburse a company for any lost revenue that occurs due to physical damage that affects a business property. For example, a building may be damaged in a storm, computers may be destroyed in a fire, or a truck may be damaged in an accident.
A policy will usually only provide payments for the time that the business remains unable to perform its usual function. More advanced policies may cover any differences in income while a company gets back to full strength.
Why Might a Claim Be Denied?
A common source of contention in these claims is what type of protection the policy provides. Another source of conflict involves the policy’s terms concerning how the damage occurs. Policies can limit coverage to weather-related events, power outages, or even employee negligence.
It is vital that business owners fully comprehend their policies to understand what protection they provide. A business interruption insurance denial attorney can help people understand why the insurance company denied their claim. Speak with a business interruption insurance denial lawyer for more information.
Seeking Enforcement of an Insurance Policy
An insurance policy is a contract between the insurance company and the policyholder. The policyholder pays premiums to the insurance company, and in exchange, the insurance company agrees to provide the protections outlined in the policy. If the policyholder files a claim and the insurance company fails to provide protection, this may be a breach of contract.
Breaches of contract are a valid cause of action in civil courts. This means that a person wronged by an insurance company may sue for enforcement of the contract in a lawsuit. A business interruption insurance denial lawyer can help businesses to sue their insurance companies seeking payment for the claim, both for a breach of contract and—if applicable—for bad faith on the part of the insurance company.
Help for Business Owners from a Business Interruption Insurance Denial Attorney
Unexpected accidents and natural disasters can have a catastrophic effect on a business. Even a single day of downtime can cost thousands of dollars and damage a business’s reputation. Many business owners choose to purchase business interruption insurance to mitigate these losses.
Unfortunately, the company that administers the policy may look for any excuse to deny a claim. These denials can be the source of civil claims for breach of contract or even break California’s laws concerning the conduct of insurers.
A business interruption insurance denial lawyer could work with you and your business to understand the reason for the denial and form a strategy to demand enforcement of the policy. Call today to get started.