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Business Insurance Bad Faith

Flooding Damage – Business Insurance Bad Faith Case Study

We got a call from a company in Eastern Pennsylvania. They had some flooding damage in their building and needed some help. Their business insurance policy covered some of the damage. But, now they were denying the rest. Was there anything we could do to help them?

business insurance flooding coverage

Flooding Damages

The company had a fire-suppression system installed. They hired a specialty company to spec and install the system. Soon after installation, the system failed. One weekend a pipe burst and sprayed water everywhere. Several inches of water flooded the entire shop floor. This damaged a lot of product and sensitive equipment.

Business Insurance Claim

The business had coverage for flood damage, so they filed a claim with their agent. The claims adjuster came out and took a look at the damage and started cutting checks to repair the damages. Everything went well for a while.

flood coverage - bad faith lawyer

Flooding Damage Takes Time

Insurance paid the claims for flood damage to the products and equipment. Meanwhile, there was damage under the surface. After some time, the company found a new problem. Employees discovered areas of the floor were sinking. The concrete flooring was cracking and sinking. In some places, the flooring was several inches lower than the surrounding floor. This caused a safety hazard when moving heavy products around the shop.

Filing A New Claim

The company contacted their insurance again. But, the adjuster claimed the damage to the flooring wasn’t because of the flooding. Insurance rejected the claim to repair the floor.

major flood damage - business insurance claim denial

When To Call A Business Insurance Bad Faith Lawyer

If you run a business, you know how costly any downtime can be. If insurance rejects your claim, contact an insurance bad faith lawyer for help. Even if you’re not sure, it’s better to get some guidance.

Additional Claims

We met with the business to discuss their problems. In our meeting, we discovered several other potential claims. The company that installed the fire suppression system was also responsible for the damages. Plus, the insurance adjuster never took samples to find the reason for the sinking floor. How could they deny the flood was the cause if they didn’t know what was actually the cause?

manufacturing flood claims denied - insurance bad faith lawyer

Pennsylvania Business Insurance Bad Faith Lawyer

In Pennsylvania, Howard Silverman has a reputation as one of the best insurance bad faith lawyers in the state. Eric Keepers also has an excellent record for helping businesses with their bad faith claims. Together, they put the hurt on insurance companies that step out of line.
Haggerty & Silverman has been helping businesses with bad faith insurance claims since 1994. We know how tough it can be dealing with insurance. That’s why we’re here to help. Call or text our office at 717-397-3200. Or, fill out our online form to schedule a free business insurance bad faith consultation.