In the May issue of Anderson Kill’s Policyholder Advisor, Finley Harckham shared four tips for submitting and pursuing insurance claims for business interruptions and expenses related to COVID-19. He notes that many policyholders who have submitted claims have been denied by their insurance companies or have received requests for “very specific and sometimes voluminous information.” The information he shares is designed to help policyholders resolve claims with the greatest chance of success.
Tip #1: Obtain an Expert Evaluation of Your Coverage
An insurance expert can identify both potential opportunities for claims and potential pitfalls which can help you decide whether to pursue a claim and, if so, how it should be pursued.
Tip #2: Cooperate with Insurance Company Requests for Information
If your insurance company has not denied your claim outright, cooperating with them is the right course. Nevertheless, you can ask why the information is being requested as well as specific questions about the company’s intentions.
Tip #3: Don’t Accept Reservations of Rights that Do Not Clearly Articulate the Possible Grounds for Coverage
You have a right to know why an insurance company is reserving any rights to deny coverage if the reason for denial is not specified. More importantly, understanding the company’s position can help you make further decisions as to whether to pursue the claim.
Tip #4: If the Claim is Denied but May Be Worth Pursuing, Decent Where and When Commence Legal Action
You have a window of opportunity to start legal action or arbitration if a claim has been denied. That timeframe may be very limited, meaning you may need to pursue claims immediately. Know your rights and responsibilities so you can act swiftly.
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