How can insurance carriers deny coverage?
Insurance companies rely on the facts of the claim and the language in the insurance policy to determine whether they are going to pay a particular claim. The insurance policy is essentially a binding legal contract between the insured and the insurance company. In exchange for the premium paid by the insured, the insurance company agrees to pay for losses subject to the terms, conditions and definitions found in the insurance policy. If the insurance policy language does not clearly cover the facts of a particular claim, then the insurance company can deny coverage. Insurance companies don’t necessarily like to deny claims they are merely going by their view of the language in the insurance policy. Do larger claims get denied more frequently than smaller claims? In the interest of maintaining a good business relationship, insurance companies usually want to make claims settlement as quick and painless for their clients as possible. As the dollars go up, however, the details of the ins
