{"id":5115,"date":"2017-01-12T10:48:20","date_gmt":"2017-01-12T15:48:20","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/liability-and-insurance\/what-to-do-if-your-business-insurance-claim-is-denied.html"},"modified":"2024-05-23T03:30:15","modified_gmt":"2024-05-23T08:30:15","slug":"what-to-do-if-your-business-insurance-claim-is-denied","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/what-to-do-if-your-business-insurance-claim-is-denied.html","title":{"rendered":"What To Do if Your Business Insurance Claim Is Denied"},"content":{"rendered":"\n
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What To Do if Your Business Insurance Claim Is Denied<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last updated\n
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Small businesses depend on commercial insurance to cover property damage, pay for lost shipments, and more. If their insurance company denies a claim, businesses may face repair bills and litigation costs they can’t pay.<\/p>\r\n

There are ways to prevent claim denial<\/a> before it happens. If the insurer denies your claim, you can still get payment. You have a limited time to challenge a denied claim, so you should know what you will do when that happens.<\/p>\r\n

We’ll review your claim denial options now. For other commercial insurance articles, visit FindLaw’s Business Liability and Insurance<\/a> page.<\/p>\r\n

What Is an Insurance Claim Denial?<\/h2>\r\n

When a small-business owner buys a commercial insurance policy, it includes an explanation of benefits. Somewhere in the fine print is a description of covered losses. These are all the things your insurer will pay for when you file an insurance claim. One reason for claim denial is filing for damages not covered by the policy, such as filing for a car accident on your company’s general liability insurance.<\/p>\r\n

The insurance policy also describes the insurance claims process. The procedure is formulaic and follows strict deadlines. All insurance providers have different requirements for how you must start an insurance claim. For instance, some insurance carriers want notification within 24 hours of damage that may result in a claim. Others may want you to send a notice through their website. Failing to do so can compromise your entire claim.<\/p>\r\n

When your claim does not meet the requirements set by the insurance company, or they have reason to suspect fraud or inaccurate information, the insurer returns the claim to the business owner.<\/p>\r\n

Review the Rejection Notice<\/h2>\r\n

If you receive an insurance claim marked "rejected," you should first look at the reasons for the rejection. Many business owners panic and call their attorneys only to find that things are not that dire. The notice itself should tell you what the problem was with the claim.<\/p>\r\n

Industry experts have found some common reasons why a claim might be returned that would not be an outright rejection:<\/p>\r\n