22 Aug 2014

 

Half of all Commercial Claims Are Disputed by Insurers

According to research from insurance governance specialist Mactavish. The Mactavish research also found that it takes insurers an average of three years to resolve a disputed claim, and the final payment is often a fraction of the original claim. The policies most prone to disputed claims included business interruption, professional indemnity and product liability insurance.

Insurers can dispute a claim for a number of reasons. Some of the most common reasons for insurers disputing a claim were alleged breaches of policy conditions and inadequate information disclosure.

Other reasons for insurers disputing a claim include:

  • The policy was not in force during the ‘insured’ event.
  • The policy is invalid because the insured provided incorrect information on its application.
  • The policy has an exclusion clause which limits payouts.

The sheer number of reasons for disputing claims significantly increases your business’ chance of diminished compensation.

At Champion Insurance Brokers, we keep clients informed on their policy details to help prevent claims from being disputed. For an insurance quote, call us today on 03330 430 430.

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