What Can I Do If My Business Insurer Does Not Pay Out On My Policy?

If you have regularly paid for business insurance, for example, commercial property contents insurance, business interruption insurance, or public liability insurance, it is frustrating and stressful if your commercial insurer refuses to pay out following a claim. In this brief article, we explain why insurers choose to refuse part or all of a claim and how you can challenge their decision.

Why do commercial insurers refuse to pay out?

One of the most common reasons for an insurer refusing to pay out all or part of your claim is that your business has grown, and you have not updated your insurance policies to account for particular changes. For example, you may have leased additional office space and forgotten to update your business contents insurance to reflect this. Therefore, always ensure your insurance policies are updated the moment you make any key business changes.

Other reasons insurance does not respond include:

• You have not provided your insurer with adequate information.
• Your insurer cites ‘lack of due care’, for example, you did not have adequate security in place.
• Failing to correctly fill in the policy forms, for example not including the addresses of all business locations or notifying your insurer of hazardous substances stored on-site.

How can I challenge my business insurer if they will not pay out?

All insurance companies have a legal duty to ensure the wordings of their policies are simple to understand. Furthermore, regulations provide that if you have answered all your insurer’s questions fully and honestly, they must pay out on your claim. Insurance companies cannot argue that you should have provided certain information voluntarily – if they didn’t say chances are they have to pay.

How Askews Legal can help

As an SME owner who needs to claim on an insurance policy, you are likely to have enough on your plate without having to fight with your insurer for part or all of your cover. It can also be quite intimidating to challenge a large insurance company, especially if they block every attempt you make to argue your case.

Our insurance solicitors can guide you through all your commercial law needs, including challenging a rejected insurance claim. We have the expertise to force your insurer to comply with insurance regulations and robustly negotiate a resolution to your dispute.To talk to us about an insurance law matter, please call us on 02476 231000 or email enquiries@askewslegal.co