Louisiana Insurance Claims Lawyer

Louisiana Insurance Claims Attorney

From 2020-2021, small businesses in Louisiana added 154,121 jobs to the local economy. Lots of small businesses rely on insurance claims if they experience a loss that is outside their control. Insurance companies know this and are extremely cautious when paying claimants what they are owed. Luckily, businesses have options if they are being strung along by an insurance company. Learn your rights as a policyholder by contacting an experienced Louisiana insurance claims lawyer.

Legal Solutions for Unfair Claim Denials

It can be tough to figure out how to effectively challenge an insurance company. The Cross Law Firm has experience in this process and can represent businesses if needed. We work closely with insurance brokers who put their clients’ interests first. Our firm serves business owners and professionals to get them the compensation they paid for through an insurance policy.

Common Reasons Why Insurers Deny Claims

Many businesses face insurance denials that aren’t necessarily justified. Some of the most common arguments include:

• Policy exclusions. In every insurance policy, an accident has to fall under certain causes for the policyholder to receive compensation. For example, if the policy covers losses that happen due to a windstorm, they might not approve a claim for damages after a flood. It’s important to review your policy carefully because if the language is vague, it might be possible to challenge the denial.
• Late reporting. There are tight timeframes for businesses to report a loss to their insurance company. However, a lot of other issues can come up after the damage, so these claims might miss the deadline. This can lead an insurer to deny a claim because the business supposedly waited too long.
• Cause of loss. Accidents that cause damage are often complicated and might stem from multiple factors. For example, an insurance company might try to claim that a business was damaged because its building was improperly built or maintained rather than from a natural disaster. You might need more evidence to counter these claims and support the truth.
• Not enough documentation. If a business doesn’t have enough evidence of a loss or doesn’t send enough evidence, the insurance company can deny their claim. This denial doesn’t have to be permanent, however. More documentation sent later can reverse the denial or prevent it completely.
• Misrepresentation. Even if a business is telling the truth, an insurance company can claim that the business misrepresented the facts when filing their claim. It’s also possible to deny a claim for mistakes, even if they were unintentional. This might leave some small businesses to rely on loans for repairs, and $1.8 billion was lent out to small businesses alone in 2020.

Since insurance claims can be denied for so many different reasons, it’s important to work with an attorney who can file your claim correctly and address any delays or denials.

What Are Your Options?

Just because an insurance claim gets delayed or denied does not mean the process is over. If the insurer did not give the policyholder a reason for the denial in writing, they have the right to request it. Depending on the reason for denial, the business can figure out whether it needs additional evidence to support its claim.

Another option is for businesses to directly appeal a decision. This is helpful when a claim is denied for issues surrounding the policy’s details or an unprotected cause. Look in the policy to see if there is documentation on how to appeal a claim. This usually gives the business the opportunity to add more evidence or clarify points that the insurer initially disputed.

If the insurer still won’t budge, it’s still possible to resolve the situation without a trial. Alternative dispute resolution methods, like mediation or arbitration, might be available, depending on the terms mentioned in the policy. If the business suspects that the insurance company is violating ethical business practices, it can file a complaint with the Office of Consumer Services under the Louisiana Department of Insurance.

FAQs

What Should a Business Do Before Filing an Insurance Claim in Louisiana?

Before filing an insurance claim in Louisiana, a business should make sure to meet any conditions in their insurance policy and that they actually have coverage. If there are any documents that can demonstrate their losses, like invoices or other financial statements, this can help prove your case. Document all the communications you have with the insurer to keep them accountable.

What Are Common Reasons Why Insurers Deny Business Claims in Louisiana?

Some common reasons why insurers deny business claims in Louisiana relate to the exact terms in the policy itself. If the type of damage is not within the details of the policy, the claim could be denied. This could also happen if the business does not file a claim on time or there isn’t enough proof that the damage actually happened. The cause of the damage is another important factor, as most policies only cover certain reasons for the damage.

Can a Business Dispute a Denied Claim?

A business can dispute a denied claim. If an insurance company denies your claim, they have to send a denial letter that explains its decision. After reviewing the letter, a business can submit additional evidence or appeal the denial if the insurance company made a mistake. The policy usually has information on how to appeal and dispute a claim. If these disputes fail, the business might need to take legal action.

How Does Louisiana Handle Bad Faith Insurance Practices?

Louisiana handles bad faith insurance practices by allowing businesses to file a claim for damages. Insurers sometimes delay or deny claims to avoid paying their claimants. If this can be proven, the business might recover damages, penalty awards, and the fees from hiring an attorney. Louisiana’s strict deadlines for insurers to review and pay out any owed benefits make them open to legal action if they don’t do their job.

Waiting Limits Your Options

Insurance claims that are denied without a valid reason threaten the future of a business, especially smaller ones. Small businesses employed 52.7% of Louisiana’s workforce in 2019, and unexpected challenges can threaten their ability to continue doing so. Insurance companies are too large to fight alone, which is why legal guidance is important for a business when facing such challenges. Schedule a consultation with The Cross Law Firm if your insurance dispute turns into a legal battle.