Small businesses are not immune to disasters. There are many disasters such companies could end up encountering, such as fires, natural disasters, cyber attacks, employee fraud or major thefts. When a business owner is caught unprepared for such disasters, it could have significant ramifications for their business. Such disasters could even leave their business financially unable to carry on.
Building strong customer trust is important in any business. This includes the insurance business. When customer trust problems arise for an insurance company, the company could have trouble drawing in new customers or keeping their current ones. The company’s overall relationship with their customers could also be impacted, which could have a variety of negative implications.
There are many natural forces capable of causing significant harm to people and property. One of these is lightning. Damage to electronics, fires and significant electric shock injuries are among the harms lightning can cause.
It can be a very sensitive situation for an insurance company when a policyholder disagrees with it over a policy denial or a claim payment offer. Such disagreements could have the potential to balloon into impactful legal matters. For example, it could lead to a lawsuit being brought. Another potential ramification such a disagreement could have here Louisiana is a policyholder filing a complaint against the insurance company with the Louisiana Department of Insurance (LDI). Such complaints could potentially lead to an insurance company facing an investigation from the government.
Sometimes, disputes arise between an insurer and one of its policyholders over a denied insurance claim. Occasionally, such disputes flare up to the point where the policyholder accuses the insurer of bad faith in relation to the claim denial. This could lead to the insurer facing a bad faith lawsuit from the policyholder.
The Fifth Circuit recently handed down a case that addresses a basic element of contract law, that of material misrepresentation, in a context that may not be very uncommon in Louisiana after the real estate bubble.
Insurance companies typically want to avoid litigation with their clients. It is expensive to go to court to defend against a bad faith claim, and may lead to bad press as well.
A Louisiana court of appeals has ruled that the family of a man is not entitled to collect on the man’s life insurance policy after his death in 2010. The man was shot to death by a sheriff’s deputy; the appellate court ruled that the victim put himself in the position of dying this way, and implied that doing so was a form of suicide.
While a person with auto insurance may cry foul if his or her claim is denied, there are many legitimate reasons for an insurance company not to pay on a claim after a car accident. Many of these reasons have to do with the policy holder breaking the law, or not realizing that they are not covered for what happened.