business fire insurance

Suffering a fire in your business was the last thing you wanted to deal with. It likely destroyed much of your equipment, your premises, or even harmed people inside. You are dealing with high costs and the prospect of getting your business back on track. Insurance was supposed to help with this, but many companies try to deny valid claims simply to improve their own bottom line.

At the Saxton Law Firm, we understand the challenges you face in overcoming denials and underpayments in business fire insurance claims. Our experienced business insurance attorneys know how to combat these tactics to ensure your rights are properly protected. 

Common Tactics Insurance Companies Use to Deny Business Fire Insurance Claims

Unfortunately, wrongful denial or underpayment of claims by insurance companies is so typical that their tactics are well known. These tactics can leave you struggling financially, despite years of on-time payments for your insurance. They often include:

  • Denying Claims on a Technicality: Companies often try to deny your claim based on small technicalities, such as a hidden policy exclusion or slightly late payments. Some companies may even invent problems to avoid payment.
  • Delaying the Claim Process: Insurers are well-known for slowing down the process by asking for more information, clarification, or taking a long time to respond to requests. They do this in the hope that you will settle for a lower amount to avoid further frustration.
  • Discouraging You From Getting an Attorney: Many companies will tell you that an attorney is not necessary, all while trying to undermine your claim. They know that if an attorney gets involved, they can no longer use these unfair tactics against you.
  • Using Adjusters to Shift Blame: Insurance adjusters are often sent in to evaluate the claim, but they are trained to ask leading questions. These questions are designed to get you to admit fault and possibly reduce the payout for the insurance company.
  • Using Policy Loopholes: Policies are complicated, long, and dense. Companies may tell you that an exclusion or other loophole means you are not covered, even if you truly are. 
  • Low-Ball Settlements: One of the most common tactics insurance companies use is to offer a low first settlement. Many hope you will simply accept it because you are desperate to get money for your company. This unfair tactic is exceptionally common when insurance companies deal with someone that does not have an attorney to help.

Strategies To Overcome Denials and Underpayments

Several strategies can help you deal with these common problems and unfair tactics. First, having an experienced Missouri business insurance attorney at your side is key to protecting your legal rights. An attorney has years of experience handling these companies. Insurers are also much more cautious about engaging in unfair behavior because an attorney knows what to look for, and the severe consequences that may come from improper conduct.

Strategies that can help you include, but are not limited to:

  • Preparing a comprehensive evidentiary packet that shows what damages the fire caused
  • Filing your claim within the appropriate deadlines
  • Using your attorney to negotiate a full and fair settlement, rather than a low-ball settlement
  • File an appeal of any insurance claim denial
  • File a bad faith action if the insurance company engages in unethical conduct

READ MORE: Filing a Business Insurance Claim in Missouri: Steps and Considerations

Our fire insurance lawyers stand ready to review your case and ensure these tactics are not used against you. Insurance companies are more likely to avoid these tactics when you attorney helps with the case. If you have already suffered these tactics, we can help.

Contact Saxton Law Firm for a FREE case review!