In today's world, most people have embraced the idea of entrepreneurship and want to own a business. But owning a business means assuming risks. If not planned for, these risks could lead to the closure of the business in the event of a crisis. One key way of managing risks is by having a business insurance policy. 

A business with insurance coverage would be able to get money to pay for any damage or loss they might incur in the future.. However, while it sounds simple enough, there are always roadblocks to successful condo insurance claims.. This is where a Pompano Beach business insurance claim lawyer comes in.. At VG Law Group, our lawyers know the ins and outs of business legal matters and will provide you with excellent advice and legal representation.

What Is a Business Insurance Claim? 

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Just as a motor vehicle driver must have auto insurance coverage and a homeowner, a homeowner's insurance policy for events like hurricane damage, a business should have insurance. Business insurance is a policy taken out by the business owner to protect physical property, intellectual property, and financial assets. 

Additionally, business insurance protects the business against thefts, natural disasters, vandalism, and defective product lawsuits. The policy would also apply to motor vehicle accidents suffered by an employee, workplace injury, or illness that might result in loss of income. Any of these occurrences could lead to financial loss for the business if it had to pay out-of-pocket. But if the business has an existing policy, they can claim compensation. 

Thus, a business insurance claim is a formal written notice sent by business owners to insurance companies after a loss. The loss must be the type covered by the policy for the claim to succeed. Once you file a claim for property damages, the insurance adjuster would commence an investigation.

The essence of the investigation is to ensure you have a legitimate claim. If they find it is not a frivolous insurance claim, they will pay you to the fullest extent your policy allows.. But if they find you claimed in bad faith, they will deny the request. 

What Are the Types of Business Insurance Policy? 

As a business owner, you can get different types of insurance policies. Generally, they are widely classified as liability policies, employee insurance policies, and property policies. 

Liability Policies

A business liability insurance policy protects your business against:

Suppose a person visiting your business premises slips and falls and suffers broken bones or a brain injury. Your liability insurance will pay for their medical treatment and give them a fair settlement to avoid litigation. A business without this coverage will pay out of pocket. 

The most common liability insurance covers: 

  • General liability
  • Professional liability
  • Commercial umbrella 
  • Directors and officers insurance

Employee Insurance Policies 

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Employers in Pompano Beach are mandated to have an employee insurance policy. Under Florida law, employers must have workers' compensation insurance for employees who suffer on-the-job injuries or illnesses. Thus, while handling heavy machinery, if an employee suffers catastrophic injuries, this policy covers their medical care and loss income. With this coverage, employers can prevent personal injury lawsuits. 

Property Policies 

Cities in Florida like Pompano Beach, Boca Raton, Palm Beach County, etc., are prone to natural disasters like hurricanes and flooding. Hence, a business owner who is a property owner ought to own a property insurance policy. Unfortunately, most businesses, especially small businesses, who do not have this coverage do not reopen after a natural disaster. This is because they cannot make property damage claims and do not have enough capital to carry out repairs.

One common property coverage is commercial property insurance. With it, you can pay for fires, storms, thefts, and other covered events. It would help if you also got a commercial flood insurance policy. It protects your business premises and properties against flood damage.

Do Insurance Companies Reject Business Insurance Claims?

Contact us if you are having problems with a contractor insurance claim in South Florida.. There are a wide variety of reasons why your insurance provider would reject your compensation claim.. Some of them are: 

  • Underinsured Property: If you do not have sufficient insurance on your business property, you may be able only to claim the "average worth." It means that if you underinsured your property by 50%, the final claim sum would be less than 50%. 
  • Out of Date Information: You must always update your insurance company on any change in your business. For example, if you buy a new piece of equipment, inform your insurance broker. The same thing for when you increase the number of employees. This is because the insurance coverage you buy depends on several factors like the industry you belong to, the number of employees, etc. Thus, failure to update information or the risks in your business could inadvertently invalidate the policy. 
  • You should inform your insurance provider of any previous claim or insurance litigation.. Not doing this could amount to withholding information, and it's a ground for denial. 
  • Failure To Meet Insurance Conditions: Your policy fine print contains crucial information about meeting the agreement with the insurance company. For example, you had a quote reduction because of an alarm system, which minimizes the risk of theft and vandalism. If you fail to turn it on and theft occurs, your compensation claim will fail.
  • Failure To Disclose Accurate Business Description: You should tell your insurer every nitty-gritty detail about your business. Don't leave anything out, as the insurance adjuster can use it as a ground to deny the claim. 

What Can You Do After a Failed Business Insurance Claim?

While the above are legitimate reasons why insurance companies deny claims, insurers can also deny your claim based on bad faith insurance.. When this happens, you need to know the steps to take to get what you deserve. Below are some of your options:

  • Review the Denial Letter: The first thing to do as a business insurance policyholder is review the denial letter. Note the reasons for the denial, and come up with an action plan. It is always best to enlist the help of an insurance law firm at this stage. An experienced attorney knows what to look for and will help you with the next step. 
  • Prepare a Response: Here, you need to ask questions. Find out the reason for the denial, and provide counter-arguments. For example, if lack of adequate information is the reason for the denial, provide the insurance company with the missing details. If you have additional evidence, now is the time to use it. You can prepare the response yourself or work with a legal team. The latter is always the better option. 
  • Commence Insurance Litigation: If, after sending a response, the insurance company still refuses to pay, you can commence a civil action. Like in a personal injury lawsuit, both parties at trial will raise legal issues and present their arguments and evidence. The decision of the court is binding on both parties. But the losing side can choose to appeal the ruling. 

What Can a Pompano Beach Business Insurance Lawyer Do for You?

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At VG Law Group, we pride ourselves as business insurance attorneys with vast experience in insurance claims and litigation. Our combined years of experience make us the best people to handle insurance claim disputes.. We also have excellent trial attorneys who will represent you in a civil action. 

Our attorneys will work to gather the evidence, sit in on negotiations, and get you a fair settlement. We work on a contingency basis and will demand no upfront fee. Contact us today for a free case review. 

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