Why Did the Insurance Company Deny My Injury Claim?

Illinois personal injury laws provide a legal remedy for seeking compensation after a personal injury accident. Injury victims may recover compensation for their injuries, damages, and losses by filing an insurance claim or personal injury lawsuit. Examples of cases that fall under this category of law include:

• Motor Vehicle accidents, including car accidents, truck accidents, motorcycle crashes, and accidents involving commercial vehicles
• Premises Liability claims, such as pool accidents, park accidents, slip and fall accidents, etc.
• Pedestrian accidents and Bicycle Accidents
• Product Liability claims, including defective products and dangerous products
• Medical Malpractice cases
• Animal Attacks and Dog Bites
• Nursing Home Abuse and neglect cases, including caregiver negligence and babysitter negligence

In most cases, the first step in a personal injury case is to file a claim against the liability insurance coverage for the person who caused you to be injured.

What is Liability Insurance Coverage?

Liability insurance coverage has two major purposes. First, liability insurance coverage protects the insured from personal liability for an injury the insured causes up to the policy limits. The second reason for liability insurance coverage is to provide compensation to injury victims for their damages and losses caused by the insured.

Unfortunately, insurance claims are not always straightforward. An injured party must prove certain legal elements to hold the insured responsible for damages. Furthermore, insurance companies hire claims adjusters who work diligently to protect the insurance company from liability by searching for any reason to deny the insurance claim or decrease the value of the insurance claim.

Why Do Insurance Companies Deny Injury Claims?

Paying large personal injury claims is contradictory to earning large profits. Therefore, the company will look for any reason to deny an insurance claim. Some reasons an insurance company may deny an injury claim include:

• The insurance policy has lapsed for nonpayment or violation of the policy terms;
• The policy does not cover the nature of the incident that resulted in your injury;
• The insurance contract does not cover the person who caused your accident;
• The policy does not cover the location where the accident occurred;
• Liability for the claim is disputed or denied; or,
• The accident was not the cause of your injury.

There could be additional reasons why the insurance company denied the claim. Some reasons may be valid while other reasons are in bad faith. A Chicago personal injury attorney can review the facts of the case and the insurance policy to determine whether the insurance company is acting in good faith or simply trying to avoid paying a valid claim to save money.

What Are the Steps After You Receive a Denial of Insurance Claim?

If you are notified that your injury claim is being denied, you should demand a written explanation for the basis of the denial. Tell the insurance company you also demand copies of the relevant sections of the insurance policy that relate to the basis for the denial of claim. If the insurance company refuses to provide a written explanation within a few days, contact a Chicago personal injury lawyer to discuss your case.

An attorney may be able to work with the insurance company to negotiate a settlement of the claim even though the company initially denied the claim. It may be as simple as providing additional information proving fault and liability that the attorney can secure by performing a thorough accident investigation. In some cases, an attorney may also find evidence of bad faith on the insurance company’s part, which is a separate claim.

If the insurance company refuses to respond to you or explain why they denied the claim, we strongly encourage you to contact our personal injury law firm for help as soon as possible. You have a limited time to file a lawsuit under the Statute of Limitations in Illinois. If you wait too long to speak with an attorney, you may lose your right to hold the party responsible for your injury liable for damages and losses.

Costa Ivone, LLC
311 N Aberdeen St #100B, Chicago, IL 60607
(708) 400-0000