Yes, you can sue your insurance company in Baton Rouge if they denied your business interruption claim. Causes include breach of contract or if the insurance company operated in bad faith. Louisiana insurers are required to settle legitimate claims in a timely manner.
If an insurance company intentionally takes steps to delay or deny your claim without a reasonable justification, you could have grounds for a lawsuit. It’s smart to consult with an experienced insurance claims lawyer in Baton Rouge for guidance
What Is Business Interruption Coverage in Louisiana?
Business interruption insurance is designed to protect your business from lost income due to events that disrupt normal operations. It typically covers lost profits, fixed expenses like rent and payroll, and sometimes additional costs to continue operations at a temporary location.
Louisiana businesses are particularly vulnerable to hurricanes and flooding, so many policies include specific provisions or exclusions for these risks. Coverage usually requires physical damage to the insured property, and it’s important to understand your terms when filing a claim.
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Why Do Insurance Companies Deny Business Interruption Claims?
Insurance companies often deny business interruption claims due to perceived gaps in coverage, policy exclusions, or failure to meet documentation requirements. Common reasons insurers may cite include :
- Claiming losses not tied to physical damage.
- Exceeding policy limits.
- Losses are from excluded hazards, such as floods.
- Procedural issues, like late filing or missing documentation.
Insurers may also dispute your calculation of lost income or expenses. In Louisiana, strict adherence to policy definitions and proof of actual business losses are required for a successful claim. If you believe your claim was unfairly denied, reach out to our team today.
Can You Appeal a Business Interruption Claim Denial?
Policyholders have the right to appeal a business interruption claim denial. The appeal process typically starts with submitting a written request to the insurance company, providing additional evidence, or clarifying disputed points.
If the insurer continues to deny your claim, Louisiana law allows policyholders to seek mediation or pursue legal action. Consulting an attorney experienced in Louisiana insurance law can increase your chances of a successful appeal.
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When Should You Consider Suing Your Insurance Company?
When negotiations, appeals, or alternative dispute resolution fail, it is time to consider a lawsuit for your business interruption claim denial in Baton Rouge. Before you follow through, it’s smart to take a few important steps:
- Consult with our legal team: Hire an attorney if you aren’t already working with one. Our team will review your denial and fight for the compensation you need.
- Review your policy: We can help you understand policy limits and exclusions and confirm your coverage before proceeding.
- Gather records: Collect and organize all documents relevant to your claim.
Louisiana law imposes strict deadlines and procedural rules for insurance claims, so don’t wait to take action. A lawsuit may be especially warranted if you suspect bad-faith practices or contractual breaches. Courts may award damages beyond your policy’s limits in such cases.
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What Constitutes a Breach of Contract?
A breach of contract occurs when one party fails to fulfill the terms of a legally binding agreement. For insurance policies, this often involves an insurer refusing to pay a legitimate claim, failing to investigate properly, or denying coverage without a valid contractual basis.
In a lawsuit, you must show that the contract existed, the insurer had a duty to perform, the duty was not fulfilled, and damages resulted from the breach. Insurance-related breaches often focus on material failures, such as refusal to pay a covered loss or unreasonably delaying benefits.
What Constitutes Bad-Faith Insurance Practices?
Bad-faith insurance practices are when an insurer intentionally mishandles a claim, violating the duty of good faith and fair dealing. Under Louisiana R.S. §1892, policyholders may pursue additional damages beyond the policy limits when an insurer engages in bad-faith conduct.
Our attorneys will aggressively pursue an insurance company that engages in bad-faith practices and denies your claim. Evidence in a lawsuit often includes written correspondence, internal communications, and documentation showing the insurer ignored policy obligations.
Get Help with Your Business Interruption Claim in Baton Rouge
You can sue your insurance company for denying your business interruption claim in Baton Rouge. Still, you may first wish to contest their denial through the dispute resolution methods outlined in your policy. If your appeal or negotiations are unsuccessful, consider a lawsuit.
Our legal team has nearly two decades of combined experience fighting for the rights of property owners. Barcus Arenas, PLLC, is a leading authority on insurance issues. As a local boutique firm, we take a personalized, client-focused approach to every case.
We know how to hold insurance companies accountable. Our team is here to listen to your story and advocate for the compensation you need to cover your business losses. Call today to schedule your free consultation and tell us what happened.
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