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Business Owner's Desk

Plain-language insurance guidance

Practical answer

Why can a claim be declined or reduced?

A loss and a covered claim are not the same thing.

The short answer

Disputes often concern whether the event falls within the insuring clause, whether an exclusion applies, whether conditions were met, whether information was accurate, and how the loss is valued.

What to do now

  1. 01Request the decision and calculation in writing with the policy clauses relied on.
  2. 02Build a chronology and separate cause, coverage, quantum, and procedural issues.
  3. 03Check limits, deductibles, average, warranties, notification, mitigation, and evidence requests.
  4. 04Use the insurer's complaint process and seek broker, claims, technical, or legal advice when appropriate.