Be careful when you select your insurance company

Some insurance companies go out of their way to avoid coverage once a loss occurs.  Post claim underwriting, unreasonable delays, multiple examinations under oath, and onerous document requests are common.  Or, in the case of Cincinnati Insurance Company, an absurd interpretation of policy language.

Often, these claim delays and denials go unanswered because policyholders simply fail to hold their insurance company accountable.  Unfortunately for Cincinnati Insurance, Mr. Frederking didn’t let the denial of his claim go unanswered.  Also unfortunate for Cincinnati, it didn’t find any sympathetic ears at the Fifth Circuit Court of Appeals.

Only an insurance company could come up with the policy interpretation
advanced here. Cincinnati Insurance Company theorizes that its automobile
policies do not cover injuries caused by drunk driving collisions, because such
collisions are not “accidents.” Its logic is this: intentional acts are not accidents, and drunk drivers make the intentional choice to drink and then drive. This theory of interpretation conflicts with the plain meaning and common usage of the word “accident”—and defies the understanding and expectation of everyone who drives a car. Not surprisingly, no court has, to our knowledge, endorsed the policy interpretation advanced here, and Cincinnati cites none…

Frederking v. Cincinnati Insurance Company.

When you purchase insurance for yourself or your business, research the companies.  Do they have a history of denying claims?  Don’t let bottom line price dictate your purchase.  That cheap insurance isn’t so cheap if the company routinely denies legitimate claims.

When faced with the denial of any insurance claim, speak to a lawyer that is well versed in insurance law.  If you have a large loss, particularly a large fire loss, speak to an attorney as soon as possible to help prevent a denial.  Your attorney can assist you with assembling documents, completing your proof of loss, the inevitable recorded statement(s) and examination under oath.