Why Did Hurricane Sandy Insurance Claims Get Denied
Auto Beauty Business Culture Dieting DIY Events Fashion Finance Food Freelancing Gardening Health Hobbies Home Internet Jobs Law Local Media Men's Health Mobile Nutrition Parenting Pets Pregnancy Products Psychology Real Estate Relationships Science Seniors Sports Technology Travel Wellness Women's Health

Why Did Hurricane Sandy Insurance Claims Get Denied

Damage caused by Hurricane Sandy to businesses is rather obvious to people who have owned a business or who currently own one. While damage to physical structure and to inventory is, of course, very serious, loss of business during the storm, following the storm and trying to continue with business as usual is seen as being just as important to business owners. Some insurance companies who write weather insurance policies that includes businesses might not see their liability to include a business owner's conception of their liability.

Damage caused by Hurricane Sandy to businesses is rather obvious to people who have owned a business or who currently own one.  While damage to physical structure and to inventory is, of course, very serious, loss of business during the storm, following the storm and trying to continue with business as usual is seen as being just as important to business owners.  Some insurance companies who write weather insurance policies that includes businesses might not see their liability to include a business owner's conception of their liability.  The business owner is concerned about his loss of income because of Hurricane Sandy.  The insurance company might not deem that loss of income due to Hurricane Sandy as being part of their coverage of the physical structure that housed the business.  The discrepancy in what is an insurance companies obligation to their client and what the client sees as the insurance companies obligation to them is part of the grievances claimed by businesses who suffered loss because of Hurricane Sandy against their insurance companies. A business might not be able to get up and go with their business because of physical structural damage or because their supplier can't deliver the products that they sell to them because the supplier was also damaged.  The business owner whose business is halted because of the supplier might think that he has a claim against the supplier's insurance company because of their client's inability to follow through on a contract with them.  Your source of income is ruined because of the supplier's situation following Hurricane Sandy.  The insurance company might not feel that they owe you your lost income even though their client is at fault, technically speaking.  The insurance company might say that even if their client, or your supplier, had delivered fresh goods, your business was in no position to open for business.  Your insurance might pay you for your Hurricane damage, but they will not pay you for your loss of income because of their client's Hurricane damage. Insurance companies will try and save money by finding exclusions in their client's Hurricane coverage.  If their client's policy has an exclusion like we won't pay you for damages caused by flooding, the insurance company will deny compensation to their insured.  If the insurance company can say that your business was damaged due to flooding and flooding is excluded in your policy, you won't get paid.  Of course, a problem can be raised if the business can claim that Hurricane Sandy caused them damage because of the high winds that drove the sea into their business area.  Insurance companies will try to get away from making full compensation to businesses who have lost not only physical structures but income.  It is up to the business owner to challenge their attempts by counter acting their exclusions.   An insurance company will respond to a claim by reading the claimant's policy.  If an exclusion exists, an insurance company will use that first and send their client a letter informing them of their position on his claim.  If the client does not challenge that reading of their policy directly to their insurance company, the insurance company has saved money and the client has to find some other source of money.  If the insured finds a lawyer who knows insurance law in New Jersey, the insured can have a lawyer respond to his insurance company.  There are all different kinds of reading into exclusions.  An insured might be offered a token settlement or no settlement at all based on the interpretation of the law and his insurance policy by the insurance company.  You might not know what your business insurance policy has written as exclusions.  An insurance lawyer will be able to read your insurance policy and to challenge the insurance adjuster if the law of the State of New Jersey is violated by the insurance adjuster.  Basically, an insurance company will do whatever it wants to when dealing with a claim.  Denying full compensation is often their first plan of action by making an offer that is not full restitution but insinuating that they are doing their claimant a favor since their claim could be denied in toto.  That kind of insurance attack is usually successful when dealing with people like business owners who have been put into a state of shock when dealing with such a catastrophe like Hurricane Sandy.  An insurance company will use tactics that include psychological means to deny a business owner full compensation on their business losses.   

Need an answer?
Get insightful answers from community-recommended
experts
in Business Strategy & Competition on Knoji.
Would you recommend this author as an expert in Business Strategy & Competition?
You have 0 recommendations remaining to grant today.
Comments (0)
ARTICLE DETAILS
RELATED ARTICLES
RELATED CATEGORIES
ARTICLE KEYWORDS