Understanding the statute of limitations for business insurance disputes in Missouri is essential for protecting your rights as a policyholder. These legal time limits dictate how long you have to file a lawsuit against your insurer if a claim is denied or mishandled. Missing the deadline can result in losing your ability to pursue compensation, making it crucial to act promptly and understand the rules.
At the Saxton Law Firm, our Missouri business insurance dispute lawyers stand ready to protect your rights under your policy. Schedule a consultation to learn more about how we can help.
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What Is a Statute of Limitations?
A statute of limitations is a legal deadline for initiating a lawsuit. In Missouri, the statute of limitations for business insurance disputes typically falls under the category of contract law. According to Missouri Revised Statutes Section 516.120, the statute of limitations for filing a lawsuit related to a written contract, including insurance policies, is five years from the date the cause of action accrues.
However, every case is different. Unique factors in your case may lengthen or even shorten the statute of limitations in your particular case. It is always best to contact your attorney right away after an insurance claim denial.
When Does the Clock Start?
The statute of limitations begins when the cause of action accrues. In the context of business insurance disputes, this usually means the date when the insurer denies your claim or fails to fulfill its obligations under the policy. However, determining the exact start date can be complex, especially if the denial is not explicitly communicated or if there are ongoing negotiations.
Exceptions to the Statute of Limitations
While the general rule is five years, there are exceptions that may extend or alter the statute of limitations:
- Discovery Rule: If the policyholder was unaware of the insurer’s breach, the statute of limitations may begin from the date the breach was discovered or reasonably should have been discovered.
- Fraud or Misrepresentation: If the insurer engaged in fraudulent behavior or misrepresented the terms of the policy, the statute of limitations may be tolled until the fraud is discovered.
- Government Claims: If the dispute involves a government entity, different rules and shorter deadlines may apply.
Steps to Take When Facing a Business Insurance Dispute
To protect your rights and ensure you meet the statute of limitations, follow these steps:
- Review Your Policy: Carefully examine your insurance policy to understand its terms, conditions, and exclusions.
- Document Everything: Keep detailed records of your communications with the insurer, including claim submissions, denial letters, and any correspondence.
- Consult an Attorney: If you suspect your insurer has breached the policy, seek legal advice from an experienced insurance attorney.
- Act Promptly: File your lawsuit within the five-year deadline to avoid losing your legal rights.
Importance of Acting Within the Statute of Limitations
Failing to file your lawsuit within the statute of limitations can have serious consequences. Once the deadline passes, courts will typically dismiss your case, and you will lose the opportunity to seek compensation.
Insurers are also aware of these deadlines and may use them to their advantage, delaying negotiations or offering lower settlements.
READ MORE: How to File a Successful Business Insurance Claim in Missouri
Missing the filing deadline can be fatal to your claim. You deserve the insurance proceeds you paid for, and you have the right to seek them with the help of an experienced lawyer.
At Saxton Law Firm, our Missouri business insurance dispute lawyers are ready to assist you. Contact Saxton Law Firm for a FREE case review!