How a Business Insurance Attorney Can Turn a Denied Claim into a Payout

As a Florida business owner, you have likely dedicated significant time, effort, and capital to building and maintaining your company. To safeguard that investment, you probably purchased business insurance with the understanding that your insurer would provide financial protection if a loss occurred. If you recently filed a claim, you did so with the expectation that you would receive prompt and fair payment for your losses based on the terms of your policy. Unfortunately, you may instead be experiencing a delay in payment, an undervalued claim, or an outright denial of your claim.

If your business insurance claim has been denied, undervalued, or stalled without justification, you may be facing an insurer that is acting in bad faith. The resulting dispute can create significant financial strain and disruption for your business operations. An Orlando business insurance attorney at Malik Law will protect your rights and advocate on your behalf to ensure that you receive the full compensation you are entitled to under your policy.

Common Types of Business Property and Liability Losses

Although most business owners understand the importance of purchasing liability insurance, the majority of them (96 percent) admit to not understanding the basics about small business insurance, according to a Next Insurance survey. Over half of small business owners (53 percent) indicate that a lack of understanding regarding the type of insurance their company needs has created a barrier to purchasing insurance. Consequently, 90 percent of small business owners believe that they are not adequately insured. While the type of business insurance your company needs will depend on several factors, it helps you to know what some of the most common types of business property and liability losses are, such as:

• Burglary and Theft: Accounting for about one in five business insurance claims, burglary and theft are the most common type of business insurance loss claim.
• Water, Wind, and Hail: Whether caused by plumbing problems or weather events, losses caused by water, wind, and hail collectively account for about 30 percent of all business property losses.
• Fire: Workplace fires are the 4^th most common type of business insurance claim.
• Premises Liability Claims: Customer slips and falls, hazardous conditions, and inadequate security claims are examples of premises liability claims. While these claims account for less than 15 percent of all claims, they can be among the costliest to pay out.
• Product Liability: Although these claims represent fewer than five percent of business insurance claims, the average jury award for a product liability case was more than $7 million in 2020.
• Vehicular Accident: Accident claims are a common type of property loss for businesses that utilize vehicles on a regular basis.
• Cyber Incidents and Data Breaches: These claims are the fastest-growing type of business insurance claim, with ransomware attack claims doubling in one recent year.

Steps Involved in Filing a Florida Business Insurance Claim

If you believe you have a valid loss that should be covered by your business insurance policy, taking the following steps when filing your claim will increase the likelihood of a full and timely payout of your claim:

1. Report the Loss to Authorities: Many losses, including those related to a theft or injury, should be reported to the police or other authorities. Always request a copy of the report to help substantiate your claim.
2. Mitigate Damages: Your policy likely requires you to take reasonable steps to prevent further damage. This may include doing things such as turning off the water to the building, putting a tarp over a hole in the roof, or shutting down a compromised computer system.
3. Review Your Policy: Before contacting your insurance company, take the time to carefully read your policy. Pay particular attention to exclusions and deductibles.
4. File Your Insurance Claim: File an official claim by calling your insurance company and/or filling out a claim online. If the loss is significant, an adjuster may be sent out to inspect the property.
5. Document Your Losses: Start documenting your losses immediately. Take photos or videos of damage to the property. Create an inventory and look for evidence, such as receipts or appraisals, to substantiate your losses. Gather witness information and request official reports. Record ongoing expenses, including loss of business income and costs associated with closing or relocating your business.
6. Obtain Independent Estimates: Although your insurance company may send out an adjuster to prepare an estimate, it is in your best interest to obtain two or three independent estimates showing the cost to repair or replace your property.
7. Contact a Business Insurance Lawyer: If your claim is not paid in full in a timely manner, consult with an experienced Orlando business insurance lawyer to discuss your legal options.

What Problems Might I Have When Filing a Business Insurance Claim?

After paying your premiums as required pursuant to the terms of your insurance contract, you expect the insurance company to pay your claim, in full and without unnecessary delay. Unfortunately, that is not always what happens. Instead, you may face any of the following common problems when filing your business insurance claim:

• Delayed Processing of Your Claim: You may find that your insurance company requests a seemingly endless amount of documentation and paperwork that creates obstacles to the timely processing of your claim.
• Undervaluing Your Claim: Your insurance company may try and use an estimate that undervalues the true cost of repairs/replacement, or they may try and avoid including some losses, such as loss of business income, when paying out your claim.
• Denial of Your Claim: Your claim may be denied in whole, or in part, because your insurance company asserts that your losses fall under an exclusion from coverage.

How Can an Orlando Business Insurance Attorney Help?

As a business owner, you have likely invested significant amount of time and money into your business. Purchasing business insurance was intended to protect your investment. If that investment is now at risk because your insurance company has delayed, undervalued, or denied your valid claim, it is time to talk to an experienced Orlando business insurance attorney at Malik Law.

At Malik Law we are familiar with the tactics and strategies used by insurance companies to avoid paying claims and we are committed to protecting your rights under your policy. We will review your policy as well as the details of your claim and advocate or litigate on your behalf with your insurance company to get your claim paid in full without further delay. Contact the team at Malik Law today by calling 407-500-1000 so we can discuss your legal options.