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Insurance Claim Denied by Your Insurance Company? Here Are Three (3) Reasons Why

Was your insurance claim denied? Has this happened to you?  Or, are you worried that it might happen to you?

No matter how straightforward you believe your insurance claim should be, surprise denials and complications can crop up, leaving you wondering why, and if you have to take “no” for an answer.

Unfortunately, the reality of “insurance claim denied” is surprisingly common, and there are many reasons why insurance companies will refuse even legitimate claims.

Here are three of the most common reasons for marine - and other - insurance claims denied by insurance companies


  • Negligence in maintaining the insured property;
  • Your insurance company didn’t assign the correct level of property insurance coverage needed for the claim; or
  • You made a mistake in filing the claim.


Negligence in maintaining the property.

Unfortunately, you can’t rely on your insurance policies to cover damage that is your fault.

There is often a fine line between what is considered negligence and proper use. Hence, it is vital that you review the differences.

If you are negligent, you will ultimately face the reality of “insurance claim denied.”

If you failed to maintain a vessel or its equipment correctly, you might be unable to recover your losses.


You don’t have the insurance coverage you think you have. 

Changes to a vessel, changes to your business, changes to policies, and a lack of regular review of coverage could add up to a nasty surprise when you do need to file an insurance claim.

When you are changing things, make sure that you read your policy or contract again to ensure you can avoid your insurance claim denied. Also, do not be afraid to ask questions or to clarify anything that you find unclear.

Regular review and adjustment of policies are absolutely the keys to mitigating the effect of potential adverse events.


You made a mistake in filing the claim.

Whether you submitted your claim under the wrong policy, made a mistake in an assessment, or simply made a typo on a vital form, all of these small mistakes can result in unexpected claim denial.

If you are afraid that this might happen to you or wondering why your insurance claim was denied, you will need expert help from an insurance claims professional. 

When going to file a claim, speak to your insurance company to ask for the proper method to avoid any hassles or potential issues. Record whom you spoke with the date and time to ensure that there can be no fault on your side if misinformation is given.

The insurance company is protecting its own bottom line.

It’s sad but true—some insurance companies will deny claims in hopes of deterring vessel owners from collecting damages.

An insurance company’s business model is to get money from as many people as possible, hoping only a few will need their promised benefits fulfilled.
An insurance claim denied by an insurance company is a result of the nature of their business - they don’t want to give out their money and will try to stop you from getting it from them as much as possible.

Avoid Having Your Insurance Claim Denied With Skilled Support From Our Legal Team

The health of your business sometimes depends on the success of a major marine insurance claim, so don’t leave your success up to chance.

Get the help you need and ensure the sustainability of your marine vessel.

Whether you are trying to mitigate future losses or struggling to make sense of a marine insurance claim denied by your insurance company, our skilled legal team can provide personalized support from start to finish.

To learn more about how we help vessel owners recover losses and limit liability, visit our blog or contact our team directly.

Toll Free: 1-888-614-7730



If No Recovery No Fee Guarenteed

The Voss Law Firm, P.C. represents clients on a local, national and international basis. We proudly serve companies and individuals along the Gulf Coast and around the globe on a contingency fee basis. Our law firm collects nothing unless we recover on our client's behalf.

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