FAQ - Isurance Disputes: Business Overhead

Q: What expenses should business overhead insurance cover in the event of a disability?

Q: What other types of business insurance may be denied and require legal assistance?

Q: Why is the payment of business overhead expense policy so crucial to the survival of my business?

Q: What do I do if my insurance company refuses my business overhead claim?

Q: Do I need a lawyer to handle my business overhead insurance dispute?

Q: How much will my lawsuit against the insurance company cost?

Q: Are there any deadlines that I should be concerned about?

Q: What expenses should business overhead insurance cover in the event of a disability?

A: Business overhead insurance usually covers expenses, including wages and salaries, utilities, taxes, rent, accounting and legal fees, interest, office supplies, principal and interest on mortgages, malpractice and other insurance, and other operating expenses, up to the amount insured in the applicable policy. The owner's income is usually not covered.

Q: What other types of business insurance may be denied and require legal assistance?

A: Depending on the size, income and type of your business, you may obtain insurance for one or more of the following categories:

• Business Overhead Expense Coverage - insurer will reimburse owner for daily operating expenses in the event the owner becomes disabled
• Business Buy-Out Coverage - insurer will cover expenses related to a forced buy-out of the business in the event of a disability or death of a business partner
• Business Key Person Coverage - insurer covers income lost and rehiring costs when a key employee becomes disabled
• Group Health Insurance - group health plans provide reimbursement for some or all medical costs to employees

Q: Why is the payment of business overhead expense policy so crucial to the survival of my business?

A: Using personal or business assets to keep your business afloat may only provide a temporary fix, and will continue to drain your financial nest. Also, a disability can be difficult to recover from, and it is often hard to gauge when and if you will be able to work again. A business has a much greater chance of success when the insurance company agrees to pay your business overhead expense claim.

Q: What do I do if my insurance company refuses my business overhead claim?

A: It is important to review your policy very carefully to make sure your claim is legal, and to read appeal protocol. An experienced business overhead insurance lawyer can help you interpret your policy and confront the insurer on unfair insurance practices.

Depending on your situation and the exact wording of your policy, you may be able to file a lawsuit based on breach of contract, breach of the implied covenant of good faith and fair dealing (bad faith) and under some circumstances infliction of emotional distress and fraud.

Q: Do I need a lawyer to handle my business overhead insurance dispute?

A: Once your claim is denied it is important to get a lawyer experienced in these types of claim to review your situation as soon as possible.

Q: How much will my lawsuit against the insurance company cost?

A: David Share Associates does not require a down payment or retainer from its business overhead insurance clients. Our disability lawyers operate on a contingency fee basis, where all costs are covered up front by our firm, and the lawyer collects his or her fee only in the event of a recovery.

Q: Are there any deadlines that I should be concerned about?

A: There are time limits to all insurance disputes and any delay in proceeding may be subject to a deadline. You should not delay in proceeding with your claim or obtaining legal advice to clarify these deadlines.