There is no doubt that running a business is a challenging task. To succeed, you must be dedicated, hard working, and capable of weathering unexpected storms. It can be unfortunate if your commercial space gets damaged in one of these storms. Whatever the cause, fire, hurricane, water damage, or vandalism, dealing with the aftermath can be disruptive and frustrating.
A commercial insurance claim can be a complex process, adding to the stress of the situation. The process of getting a fair settlement can be tough with insurance, even though it’s supposed to be a security blanket. This article explores some common hurdles businesses face when filing commercial property damage claims and offers strategies to overcome them.
1. Denied or Underpaid Claims
One of the most frustrating challenges is having your claim denied altogether or receiving an offer far below the actual repair cost. Insurance companies may deny a claim based on various reasons, often due to limitations in your policy or claiming the damage wasn’t caused by a covered event. Alternatively, they might offer a lowball settlement amount hoping you’ll accept it to avoid further negotiations.
Overcoming this challenge:
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- Know your policy: Thoroughly review your commercial insurance policy before any incident. Understand your coverage details, deductibles, and exclusions.
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- Gather documentation: Take photos, and videos, and get repair estimates from qualified contractors to prove the damage.
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- Seek legal counsel: If your claim is denied or the settlement offer seems unfair, an experienced commercial insurance claim lawyer can help. They understand insurance policies and can negotiate persuasively on your behalf, assuring you receive the compensation you deserve.
2. Burden of Proof
Business owners have the burden of proving what caused and how much damage was done. Insurance companies are incredibly diligent, and you might need to provide a mountain of documentation to support your claim.
Overcoming this challenge:
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- Act quickly: The sooner you report the damage and document it, the easier it will be to gather evidence.
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- Maintain detailed records: Keep thorough and complete records of your business inventory, equipment, and property value. Then you’ll have a much easier time proving your losses.
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- Work with experts: Depending on the nature of the damage, consider consulting structural engineers or other qualified professionals to assess the damage and create detailed reports.
3. Delays in Processing
Insurance companies are known for their bureaucracy, and claims processing can take time. A delay can be frustrating, especially if your business operations are disrupted as a result of the damage.
Overcoming this challenge:
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- File your claim promptly: The faster you file your claim, the sooner the process can begin.
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- Stay organized: Maintain a clear record of all communication and documentation submitted to the insurance company.
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- Maintain communication: Communicate with the adjuster assigned to your case on a regular basis. However, don’t be too aggressive and forceful, because it can backfire.
4. Difficulty Negotiating with Adjusters
The primary objective of insurance adjusters is to minimize payouts for the insurance company. There is a possibility that they are skilled negotiators who try to pressure you to accept a lower settlement.
Overcoming this challenge:
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- Understand your rights: Know your rights as a policyholder and Florida’s commercial insurance laws.
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- Do not negotiate alone: A commercial insurance claim lawyer has the experience and knowledge to handle communication with the adjuster and ensure you are not taken advantage of.
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- Know your bottom line: Before entering negotiations, determine the minimum amount you need to cover repairs and business disruptions. Make sure you get what you deserve.
5. Complexities of Business Interruption Claims
Beyond damages to your physical property, commercial insurance might cover business interruption. This covers lost income due to business closure while repairs are ongoing. However, these claims can be quite complex, with various factors considered, like lost sales, ongoing expenses, and temporary relocation costs.
Overcoming this challenge:
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- Review your policy details: Understand how your business interruption coverage works and the ways to get compensated.
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- Maintain financial records: When calculating lost revenue, accurate and detailed records of your business’ income and expenses are essential.
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- Seek legal expertise: A commercial insurance lawyer can help gather evidence, analyze your situation, and negotiate a fair settlement for lost business income.
Why Choose Tarnovsky Law as Your Go-To Partner?
At Tarnovsky Law, we understand the complexities of commercial insurance claims and the challenges businesses face recovering compensation. We are a leading law firm in Florida dedicated to providing exceptional legal services to businesses facing property damage claims.
With years of experience and a proven track record of success, our team of dedicated lawyers will fight tirelessly to protect your rights and maximize your recovery. Moreover, we offer personalized attention, in-depth legal knowledge, and effective representation to ensure you receive the payout you deserve.
Final Thoughts
Business owners can find it tough to navigate the complexities of commercial property damage claims. However, understanding the common challenges and having a trusted partner by your side can significantly improve your chances of a successful outcome.
Getting businesses back on their feet after property damage is what we do at Tarnovsky Law. The team at our law firm is dedicated to providing personalized legal representation and getting you the best results.
Get a free consultation and find out how we can help you with your commercial property damage claim.
