An insurance contract is a contract where you pay money to an insurance company in exchange for reimbursement or protection from losses. Those losses can include financial losses stemming from auto accidents, injuries, damages to your home, or costly healthcare bills.
Many insurance companies can provide insurance policies at affordable prices by pooling their policyholders’ risks to keep prices low. Another reason why insurance companies can keep policy prices affordable is by predicting the level of risk among their policyholders. For example, a successful auto insurance company can closely predict how many accidents their clients will file claims by examining accident data and numbers from previous years. Problems begin to pop up when claims aren’t as easy to predict.
Our current COVID-19 pandemic is a great example of healthcare insurance companies getting hit with an unexpected increase in claims that no one could have predicted. Companies that provide business insurance policies are also seeing an unexpected increase in claims as businesses continue to shutter across the country. Unfortunately, this sharp increase in claims may result in some being denied.
Believe it or not, when insurance claims skyrocket, like we’re seeing with business insurance and healthcare claims, insurance companies may become more strict on the type of claims they approve. As a result, many claims can end up being denied for a number of reasons. This can create a lot of confusion and anger for policyholders, especially if you’ve been paying for your policy for years. When it comes to an unexpected event like a pandemic, many might assume their policies would cover losses from the pandemic, but that is not always so. In fact, many policies, especially business insurance policies, exclude outbreaks and pandemics.
What happens if your claim is denied, though? Is there anything you can do? Let’s find out.
Just because your claim was denied doesn’t mean you’re out of options. It does not mean you cannot still seek relief from your insurer. The question is, how? How can you receive money from your insurer to help pay your business’s bills so you don’t have to shut down? The first step is to remain calm and not panic. The second step is, contact an attorney to review your policy. Even though many insurance policies exclude pandemics, there may still be avenues you can pursue to get some sort of relief. Stay calm. Stay focused. A claim denial doesn’t mean you’re out of options, it just means it’s time to consult an attorney to see what other options may be available.
Did you recently get denied after submitting an insurance claim? Do you believe you’re entitled to monetary relief? Contact the skilled Chicago insurance litigation lawyers at King & Jones. We’re passionate about helping people like you better understand their insurance policies in these unprecedented times. Call our office at 312-372-4142 for a consultation today.