After an incident that damages your business, you need to make a claim. Depending on what happened, you might make the claim to your own insurance company, the negligent party’s insurer, or both. When two insurance companies are involved, things can quickly get more complicated.
Insurance companies will not always agree. They may dispute whether liability is appropriate, who should pay, and fight over the amount owed. One company may deny a claim while the other fights to ensure there is coverage.
At the Saxton Law Firm, our business insurance attorneys are ready to help in whatever situation applies to your case. We help you know what to do when insurance companies disagree. Our experienced team fights to resolve the dispute as quickly and effectively as possible.
Common Situations Involving Multiple Insurance Companies
Business insurance protects your company from many types of unexpected losses. These can range from commercial automobile accidents to weather-related property damage claims. In situations like the weather or an internal accident, your insurer may be the only company involved.
When a third party caused the damage, you are likely to have another insurance company involved as well. One of the most common examples is in a motor vehicle accident. For example, imagine your employee is delivering a product to a customer. Another driver runs a red light and strikes your delivery van. Your worker is injured and your delivery van totaled. Not only will your insurance company be involved, so too will the other driver’s insurance company.
What To Do If Insurance Companies Cannot Agree
Two insurance companies may disagree many aspects of your claim. The two primary disagreements concern which company is liable to cover the claim or what amount the insurer must pay. Whatever the reason, there are several options that may be available to help resolve any disagreement between the insurance companies.
Internal Appeal
If either company denies the claim or offers to pay too little, there are internal processes to review this decision. You and your business insurance attorney can file an internal appeal with whichever insurance company denied your claim.
Claim denials are common, even when you clearly should have coverage. Third-party insurers especially try to deny valid claims in order to save money. An internal appeal can show that company you are serious and will protect your rights.
External Review
In some instances, you may have an independent evaluator consider the appeal. Whether an external review is permissible or the best option is best decided by your attorney.
Mediation
Mediation is a form of alternative dispute resolution. It utilizes a neutral third party that helps facilitate settlement negotiations. The mediator does not decide the case in any way, but fosters cooperative efforts to resolve the case without litigation. Mediation can be especially helpful if your attorney is also a strong negotiator.
Arbitration
An arbitration may be mandated by your insurance policy or as an option to resolve the dispute. It utilizes an arbitrator or panel of arbitrators who hear evidence and decide the case outside of court. This process follows specific procedures your attorney is prepared for.
Litigation
If insurance companies continue to disagree and refuse to compromise, litigation may be the next step. The insurance companies may file suit against one another, or you and your attorney may have to begin the litigation. The court or a jury will ultimately decide the dispute if the parties cannot settle.
READ MORE: What To Do When a Claim Is Denied
At Saxton Law Firm, our Missouri business litigation lawyers are ready to help you with any insurance dispute. Contact Saxton Law Firm for a FREE case review!