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When Your Insurance Company Refuses to Cover Your Business for a Loss

 Posted on December 15, 2021 in Business Law

Insurance companies across the country do not like to pay claims. Here in Wisconsin, it is no different. 

Once your business is on notice of a loss or a legal claim against it, you should consult with our Milwaukee counsel or notify your insurance company.  While the insurance company will start the claims process and open a file, it is also likely that the company will evaluate whether it can avoid coverage based on the terms and conditions of its policy. 

Level the Playing Field

If your business is facing a significant legal claim and the possibility of a lawsuit, you are going to next receive a reservation of rights letter. Your insurance company may even deny your claim or coverage. If your business finds itself in this position, the sooner you retain a lawyer on its behalf to protect your business, the sooner you can try to level the playing field. 

Why would the insurance company deny your business coverage? The reality is that it could be for several reasons, and it usually is for more than one reason.

If the loss arose from the work or project your company completed, these denials are likely to be, in part, based on policy exclusions related to faulty workmanship. If your business possesses either a commercial general liability policy, commonly known as a CGL policy, or an umbrella policy, there is likely to be provisions limiting or excluding coverage related to the actual product your business produces or the service it provides.

Moreover, it is likely your insurance company will claim that whatever happened does not constitute an “occurrence” under its policy. If property was damaged as part of the claim, insurance companies will also maintain that whatever was damaged was not defined as “property damage” under the policy. 

The frustration business policyholders feel when they have paid premiums for years only to have the claim denied in their time of need is understandable.  

What is critical in this circumstance is to find an attorney who understands both the claims and litigation process, so that your business can be advised on the best strategy to obtain or maintain the insurance coverage that protects it. 

Contact Our Milwaukee Insurance Coverage Dispute Attorneys

If your business or company is involved with an insurance claim, Gimbel, Reilly, Guerin & Brown, LLP can provide you with assistance and advice on how to obtain coverage and protect your business from liability. Contact our Milwaukee Insurance Coverage lawyers today by calling 414-271-1440

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