It’s not uncommon for businesses to file claims on insurance policies. This can happen when an employee gets hurt, there’s an accident involving a company vehicle, or in light of a natural disaster. When an event happens that results in many companies filing for business disruption, it’s possible the insurance companies could undervalue claims to prevent damage to their bottom line. When this happens, it’s important for business owners to understand how Kentucky small business insurance disputes work.
According to the Small Business Administration, a small business is one with 500 or fewer employees. Nationwide, there are more than 27 million small businesses – some of the most common being construction firms, small stores, beauty salons, and community banks. Regardless of the business, it’s important for the owner to have the proper insurance policies in place to help in the event of an issue or disaster.
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Insurance Requirements for Small Businesses in Kentucky
Kentucky only requires business owners to have two types of commercial insurance policies: workers’ compensation and business auto. All business owners with one or more employees are required to maintain workers’ comp coverage in the event one of their employees is injured on the job. Business auto insurance is required in the event a business owns any vehicles or uses them for business purposes.
There a number of other insurance options, including business interruption insurance coverage. This covers events like fires, weather-related damages, government lockdowns, mandatory curfews, and other events that could result in financial loss for your business. This insurance can cover lost revenue, rent or lease payments, relocation costs, employee wages, taxes, and loan payments.
The cost of small business insurance in Kentucky is contingent on factors like claims history, deductibles, employees, experience, gross sales, industry, location, and policy limits. Overall, it’s important to have insurance coverage that protects your business in the event of an incident resulting in losses.
Coronavirus Insurance Disputes
In addition to the toll Covid-19 is taking on human lives, it’s also impacting businesses worldwide. Many businesses in Kentucky and across the United States have been ordered or recommended to close to reduce the spread of the virus. The loss of income that stems from these closures can seriously impact a small business owner.
While business interruption insurance does issue cash payments for direct physical loss or damage, it’s possible insurance companies could deny claims because of the lack of physical damage to the business’s infrastructure. This loophole would allow insurance companies to maintain their bottom lines while businesses suffer.
Business interruption insurance has existed for a long time, but after the SARS epidemic in the early 2000s, a number of carriers began excluding viral or bacteria outbreaks from standard coverage. Business owners may not realize this when they purchase the coverage. Because of how infrequently viruses spread to this degree, it may not have even crossed the business owner’s mind.
It’s important for business owners to review their coverage to ensure they’re not being swindled. If necessary, our lawyers can help you file a coronavirus business dispute, so you receive the compensation you need to keep your business afloat during these challenging times.
Elements of a Strong Insurance Dispute Claim
When your business is at stake, it’s understandably frustrating to learn that your insurer has denied your claim. Even if you’ve paid your premium for years without a claim, you could still receive a denial. When that happens, you have the right to file a dispute against the decision.
To file a successful dispute, you have to understand your rights and policy. Working with a lawyer is often in your best interests, as they’ll be able to interpret the policy faster and explain your rights to you in a way that makes sense. Because insurance is regulated by the state, it’s important to work with a local attorney who has an understanding of state laws.
Once you understand your rights and policy, you can begin the dispute process. This will involve ensuring you understand the insurer’s dispute process, confirming your coverage, and determining why you believe the insurance company wrongfully denied your claim.
Your Kentucky lawyer will help you gather all the necessary tools you need to prove your point. This will involve having all documentation handy and organized. While they’ll likely start by handling the dispute over the phone, there could come a time when official documentation needs to be submitted if you’re not getting anywhere.
If those conversations do not result in a positive outcome, you have the right to apply external pressure by taking the complaint to the state’s insurance commissioner. This could result in the insurance company agreeing to a settlement. If not, your last option would be to proceed with the matter to court.
Thomas Law Offices can Help
If you’re dealing with a small business insurance dispute in Kentucky related to the coronavirus or another issue, Thomas Law Offices can help. We may be able to provide small businesses with services on a contingency fee basis. This means that if we are unable to achieve a successful outcome for your case, you won’t owe us any money.
To find out about your options regarding disputing a decision made on an insurance claim, schedule a free consultation with our firm today. If you haven’t filed yet, we can help you with that process and ensure your claim is backed by the proper evidence and paperwork needed to get the payout your business needs to keep running.