Delaware Business Insurance Update, from CNC Insurance Associates Inc. 7-24-13, Never say Die, When it Comes to Coverage Interpretations

Recently I had the experience of being in a coverage interpretation battle with an insurance company. My client had suffered a major loss to his business. The coverage with an adequate limit was on his policy so I figured the claim would be a slam dunk and be paid. Imagine my surprise when the insurance company denied the claim because of an interpretation of a word in the insurance policy. The debate then began as I unleashed my 26 years of experience and knowledge on the carrier. At first it looked bleak, as the insurance company had adjusted claims similar to my client using their interpretation. The case law was weak on the subject so I was left arguing my point with example after example I had experienced over the years. It all paid off as the insurance company attorney agreed with me and they paid the claim to my client. It just goes to show that in a insurance policy one word can mean everything, or the interpretation of one word. In this case I was fortunate to have someone on the insurance company side that agreed. Many times however it doesn't turn out in the benefit of the client. Insurance contracts are complex. As a business owner pick your insurance professionals carefully. Until next time be careful out there and know you risks.

G. Kevin Nemith President CNC Insurance Associates Inc.
Serving DE, MD, PA, NJ, & VA
www.cncinsurance.com
www.bizinsurancetv.org

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