Business Insurance Denials: Key Causes and How to Deal with Them
In B.C., business interruption insurance provides crucial protection for businesses dealing with unexpected closures. However, in some cases, business owners might have their business interruption claims wrongfully denied by their insurance provider. If this happens to you, you’ll need an experienced insurance denial lawyer on your side. Keep reading to learn how Rice Harbut Elliott LLP (RHE Law) can help navigate your claim denial promptly and professionally.
What is Business Interruption Insurance?
Business interruption insurance is a type of coverage that replaces lost income when your business cannot operate normally due to specific events. In British Columbia, this insurance is governed by the Insurance Act and provides financial protection during temporary business closures. Business interruption insurance usually offers protection for operations dealing with environmental events, including fires and floods. Your coverage will depend on your policy.
What Does My Business Interruption Insurance Cover?
Business interruption insurance typically covers the financial losses your business experiences during forced closure or reduced operations. The coverage extends beyond simple property damage to address the ongoing economic impact of business disruption.
Standard business interruption coverage includes:
- Lost revenue
- Operating costs, including rent, utilities, and taxes
- Loan payments that occurred during the closure
- Employee wages
Why Was My Business Loss Claim Denied?
Despite having valid coverage, business owners frequently find their claims wrongfully denied by insurance companies. The language in insurance policies can be ambiguous and difficult to understand, giving insurers grounds to dispute legitimate claims. Common reasons for business interruption claim denials include:
- Misrepresentation: Insurance companies can deny your claim if they feel that you’ve filled out your policy application incorrectly.
- Missed Filing Deadlines: This dismissal occurs if you file outside of the time period specified in your policy.
- Insufficient Evidence: If your insurance provider feels you have not provided enough evidence to trigger your business interruption insurance, they can deny your claim.
How We Can Help
Business loss claims are complex, and legitimate claims are denied for a variety of reasons that experienced insurance lawyers can help you overcome. For example, RHE Law will carefully review the terms of your insurance policy and the reason(s) for the denial. We’ll assess whether the denial was made properly and recommend the best course of action.
Time is of the Essence
Time limits are critical in insurance matters. Most insurance policies set out clear timelines for providing notice of your claim to your insurer, and for appealing decisions made by the insurer. It is crucial that you are aware of these deadlines, so you do not jeopardize your claim or appeal.
If you wish to sue the insurer or broker, the basic limitation period is two years. This means that, in general, a plaintiff has 2 years after the day on which the claim is discovered to file a lawsuit against the wrongdoer. There are various complex rules which may postpone the limitation period, which you can consider with experienced insurance lawyers at RHE Law.
RHE Law: Insurance Denial Lawyers in B.C.
Has your insurance company recently denied your claim? Don’t delay–call RHE Law today to schedule your free legal consultation. We are here to help.