Business Interruption Insurance Claims
Business Interruption Insurance is sometimes referred to as “business income insurance” and it serves as the last line of financial defense for businesses during disasters and pandemics. This type of policy provides coverage for businesses experiencing unsurmountable financial losses during events such as fires, natural disasters, and global outbreaks. Most business interruption insurance policies cover things like extra expenses, employee wages, and loan payments.
Business interruption insurance can also be paid out if government actions cause operations to cease temporarily, causing financial loss. Nevertheless, it is important to note that not all business interruption insurance policies are the same and your coverage may differ depending on your policy. Furthermore, business interruption insurance is not sold as a separate policy, but rather, as an add-on to your existing insurance policies.
Click here to learn more about Business Interruption Insurance and COVID-19.
First-Party Insurance Claims
In first-party insurance claims, the insured party is referred to as the “first-party” and the insurance company is referred to as the “second-party.” A first-party insurance policy is often used in the event of a serious injury, unexpected calamity, or a natural disaster. Unfortunately, insurance companies are notorious for using bad faith tactics and red tape to minimize or completely eliminate claims. In many instances, insurance companies outright deny claims.
A first-party insurance policy serves as a contract between both parties. When an insurance company violates the terms of its policy or fails to fulfill its obligations, the first-party can file a lawsuit for breach of contract and may be awarded compensation. In order to successfully bring a lawsuit against an insurance company, the first-party must be able to prove that (1) the insurance contract existed and (2) that it was in force at the time of loss. Additionally, the first-party must prove that they were in compliance with the terms of the policy and that the second-party violated the terms of the agreement.
Property Damage Claims
Property damage claims differ from other types of insurance claims. Policyholders pay their insurance company hundreds, if not thousands, of dollars each month because they want to be protected from an unexpected tragedy that could leave them in financial ruin. Insurance companies know that it’s human nature to expect calamity. It is not a matter of if, but when, and life seems to take us down that path regardless of our preparations. Homeowners and business owners alike pay for insurance so that when a disaster strikes, they can say “well, at least I’m insured” - until they realize they aren’t.
The truth is, natural disasters like scorching wildfires and devastating hurricanes create billions of dollars worth of property damage each year and their frequency only seems to be escalating. Regrettably, insurance companies have shown time and again that their commitment is to their shareholders, not their policyholders. Insurance companies are designed to pay out as little money as possible, leaving insured people disheartened and vulnerable.
After a disaster, insurance companies are likely to deploy their delay tactics and will purposely mishandle claims to pressure policyholders into giving up or settling for less. The adjusters will tell policyholders they have to “investigate” the same damage repeatedly and each week they will give them a new reason as to why their cases can’t settle. Policyholders who believe their insurance company is acting in bad faith may have legal claims against their insurers.
If you were impacted by Hurricane Harvey, you may have an Inverse Condemnation claim, click here to learn more.
If you believe you have a claim against your insurance company, it is important for you to consult with experienced insurance claims attorneys as soon as possible. Insurance companies have armies of sophisticated adjusters and corporate attorneys that are working around-the-clock to undermine your claim. Do not be fooled, your insurance company will do whatever it takes to save money at your expense.
The VB Attorneys team is comprised of experienced lawyers who have a winning track record battling the biggest insurance companies. If you want an entire team of people dedicated to winning your case you need to call 713-224-7800 or click here to contact us.