Did Your Business Suffer a Loss Exceeding Your Coverage Limit?

Businesses which suffered a loss that exceeded the coverage limit shown in their property or liability insurance policy may have legal recourse if their insurer failed to adhere to the terms of their agreement. Allegedly, property or liability insurers will adjust a claim by applying the coverage amount shown on the declarations page of the policy when they should, under the terms of the policy, be applying a higher coverage amount. The result is a policyholder whose loss exceeds the coverage amount shown on the declarations page and who may not receive coverage they are entitled under the terms of the policy.

If your business has experienced a loss that exceeds the coverage limit shown in the property or liability insurance policy, and therefore the insurance company paid only the coverage limit shown in the policy, you may have a claim for compensation.

Liberalization

For decades, the insurance industry has sold policies with a provision that is intended to broaden coverage if a company introduces new features without increased rates or premium charges that would apply to an insured on renewal of coverage. This was done to avoid the expense of policyholders cancelling and “re-writing” their insurance to take advantage of new features.

The industry has extended this concept to most commercial insurance and even some personal lines. Typical broadenings include new coverage, reduced/clarified exclusions, and increased limits.

Class Action Lawyers

If your business experienced a loss which exceeded the coverage limit shown in your insurance policy, and your insurance company only paid the coverage limit show in the policy, you may have legal recourse. Potentially, you may be able to file a claim for compensation against your insurer alleging that you were not covered properly under the terms of your agreement.

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