Your business liability insurance is there to protect you against legal challenges. In most cases, it covers your costs if an employee or member of the public is injured on your business premises and they take legal action. It can also help you cover costs if you damage customer property for any reason. But you need to remember that insurance companies don’t like to pay if they can avoid it.
There are a number of reasons why your insurance company might try to deny your claim. Knowing what the potential pitfalls are can help you avoid any difficult situations and make sure that you get paid when you make a claim. These are some of the reasons why business liability insurance claims are rejected.
The Situation Isn’t Covered By Your Policy
The first thing you should always do when making a claim is to check your policy. If there isn’t any information there that relates to the situation, then it’s possible that your insurance company will reject it. It might be that the coverage is very specific and doesn’t come into play unless certain criteria are met. If you believe that you should be covered and the insurance company won’t pay, you should get in touch with some insurance claim attorneys and ask for their advice. In some cases, you can fight your case and get your claim paid. However, if the policy doesn’t cover you, there isn’t much you can do. It’s important to read the policy in full so you have a clear understanding of exactly what situations you are covered for.
You Made Mistakes With Health And Safety
If you are liable for an accident that occurred on your business premises, then your insurance company will have to pay up. For example, if you didn’t put up the appropriate health and safety signage or if there was a gap in the fencing around your property that made things dangerous, then they will have to step in. However, there are some circumstances where mistakes aren’t covered by your policy. One of these is poor general maintenance or bad cleanliness. If you notice something wrong with equipment but don’t fix it because it’s not very obvious, then this could be used against you. Your policy will outline exactly what responsibilities you have over your health and safety and it is important to uphold your end of the bargain.
You Lied On Your Application
It is very important for you to be honest when you are filling out the application form for your business insurance. If you lie about any information, then this can come back to haunt you at a later point. The company might not even find out that you weren’t totally truthful, but if they do, then they will take action against it. This could mean that your policy is declared null and void and that’s bad news for your claim.
You’re in big trouble if your liability insurance claim is denied, so make sure you avoid these situations and you always read your policy carefully.