That Insurance Policy Does Not Guarantee Protection in All Cases

insurance policyMost people understand the important role an insurance policy can play as a form of financial protection in various areas of their lives.  And if the need arises to file a claim, they would also expect a quick and fair settlement from the insurance company.  But unfortunately (and surprising to many), purchasing an insurance policy does not automatically mean that your claim will be paid.

Whether you have a personal or business insurance policy, there is always a chance of your claim being denied.  Some examples of insurance policies that often encounter disputes might include:

  • Auto insurance
  • Residential homeowners insurance
  • Title insurance
  • Commercial property insurance
  • Commercial general liability insurance
  • Workers’ compensation insurance
  • Medical insurance
  • Life insurance
  • Disability insurance

Why an insurance company may deny your claim

Insurance companies, like any business, want to maximize their revenue and minimize their losses.  Therefore, they often look to limit their payouts or even completely deny claims when possible.  Some common reasons that an insurance company could use to deny a claim would include:

  • Coverage may not have been in effect due to missed payments or other factors
  • There is a question of liability, or who was at fault, in the case of an accident
  • The terms of the insurance policy may have been violated
  • The information you provided on your original insurance application may be in question

Bad faith denials

One common and particularly frustrating form of denial is when the decision by the insurer is made in bad faith.  This means that the insurance company intentionally denies the claim when there is no valid reason to do so.  Or similarly, they could drag out the case for an extended period of time thereby delaying a settlement indefinitely.  If you believe you are a victim of bad faith by your insurer, you should speak to one of our attorneys who can help determine if a lawsuit would be an appropriate course of action.

An experienced attorney can help get a denial overturned

Insurance litigation is a very complex area of law.  An insurance policy tends to be very long and filled with legal fine print that is essential to understand if you want to succeed in a dispute with a large insurance company.  Our legal team at Churchill, Quinn, Richtman & Hamilton, Ltd is highly qualified to represent both individual and business clients in matters of insurance disputes and have helped our clients achieve successful resolutions in a wide range of situations.  Schedule your initial consultation to learn more about resolving your insurance claim dispute by calling 847-223-1500.