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  • Craig Harrell

What to do After a Business Insurance Claim is Denied

Updated: Apr 16

As a business owner, you're likely familiar with the range of challenges that accompany running a successful operation. One potential issue you could be hit with is an insurance claim denial. A denial can be a major setback, especially if you're counting on the claim to cover significant losses or damages. However, it's essential to remember that a denial isn't the end of the road. There are steps you can take to appeal the decision and get the compensation you deserve.

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Understanding the Denial

When your business insurance claim is denied, the first thing to do is understand why. Insurance companies can deny claims for various reasons, ranging from a lack of coverage under your policy to insufficient documentation or even failure to notify the insurance company in a timely manner.

Once you receive the denial, you should get a written explanation, sometimes referred to as a denial letter, detailing the reasons for the denial. Review this document thoroughly. If you find the explanation unclear, don't hesitate to contact your insurance provider for clarification. Understanding why your claim was denied is the first step in formulating an effective appeal.

Appealing the Denial

After comprehending the reasons behind the denial, it's time to appeal. Each insurance company has its own procedure for appeals, which should be outlined in your policy. If the process isn't clearly stated or you're unsure about how to proceed, reach out to your insurer or insurance agent for guidance. Your appeal should be as detailed as possible, directly addressing each point made in the denial letter. If the denial was due to a lack of documentation, provide any missing or additional documentation that supports your claim.

If the denial was based on policy interpretation, you might need to make a strong argument backed by your understanding of the policy or seek legal advice. Remember, time is of the essence when appealing a claim denial. There's usually a limited timeframe for submitting an appeal, so ensure you start the process as soon as you can.

Hiring a Public Adjuster

If you're finding the appeal process daunting, or if your initial appeal is unsuccessful, hiring a public adjuster (that's us!) can be a worthwhile consideration. We are insurance professionals who work on behalf of policyholders to negotiate insurance claims. As public adjusters, we bring a wealth of industry knowledge and experience to the table. We understand the intricacies of insurance policies and can effectively navigate the appeal process for you. We can assess your situation, gather necessary documentation, deal with the insurance company, and negotiate on your behalf. Engaging a public adjuster can be particularly beneficial if you're dealing with a large claim, as we can help you maximize your recovery. But remember, public adjusters are not lawyers, and if your claim involves complex legal issues, you may also need to engage legal counsel.

Seeking Legal Advice

If your claim involves a substantial sum, or if there's a complex dispute over policy interpretation, hiring an attorney who specializes in insurance law can be beneficial. They can help you understand your legal rights, assess your case's viability, and if necessary, represent you in court. Remember, while public adjusters can handle negotiations with the insurance company, we can't provide legal advice or represent you in a lawsuit. So it's advisable to consult with a lawyer if you're dealing with complex issues or a significant amount of money.

Harrell Adjusting Services: Guiding You Through Your Appeal

A business insurance claim denial can be a significant hurdle, but it's not insurmountable. By understanding the reasons for denial, appealing decisively, and seeking professional help when necessary, you can turn the tide in your favor.

Whether it's with the help of our team at Harrell Adjusting Services or a legal professional, it's important to advocate for your business and get the compensation you rightfully deserve. Remember, the denial of your claim is not the final word - it's merely the beginning of a dialogue. Don't give up – persistence, diligence, and the right help can go a long way in achieving a successful resolution.



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