You would have to look through your policy wording, and speak with your insurer's claims team, to understand exactly why your claim was rejected.
1. Establishing coverage under your policy
It's important to first understand what coverage you had. Did you have an SME insurance package, which included both Commercial Property insurance, and Business Interruption Insurance? Or did you only have one of these, or none of the above?
1a. Commercial Property Insurance (a.k.a Property All Risks Insurance)
If you had a commercial property cover, you would need to look at the policy wording to see if it covers "burst pipes", or "water leakages", or something to that effect. If you find that the exclusion list mentions that burst pipes are specifically not covered, then that would be the reason why your insurer denied the claim.
1b. Business Interruption Insurance
This is combined with Property All Risks, and pays a daily cash benefit when your business cannot operate. Typically, the payout is tied to an event that is covered under your Property All Risks policy. So if an incident happens and your business shuts down, but your Property All Risks policy doesn't cover that incident, you won't get your cash benefit.
It can be frustrating to not receive a payout when you need it the most. It's important to ensure that your insurance broker knows your policies inside-out, so that they can advise you on the best coverage for your needs.
Get beauty industry insurance quotes here, with coverage available for burst pipes and other major risks. Save up to 25% on your premiums with Provide.
You would have to look through your policy wording, and speak with your insurer's claims team, to understand exactly why your claim was rejected.
1. Establishing coverage under your policy
It's important to first understand what coverage you had. Did you have an SME insurance package, which included both Commercial Property insurance, and Business Interruption Insurance? Or did you only have one of these, or none of the above?
1a. Commercial Property Insurance (a.k.a Property All Risks Insurance)
If you had a commercial property cover, you would need to look at the policy wording to see if it covers "burst pipes", or "water leakages", or something to that effect. If you find that the exclusion list mentions that burst pipes are specifically not covered, then that would be the reason why your insurer denied the claim.
1b. Business Interruption Insurance
This is combined with Property All Risks, and pays a daily cash benefit when your business cannot operate. Typically, the payout is tied to an event that is covered under your Property All Risks policy. So if an incident happens and your business shuts down, but your Property All Risks policy doesn't cover that incident, you won't get your cash benefit.
It can be frustrating to not receive a payout when you need it the most. It's important to ensure that your insurance broker knows your policies inside-out, so that they can advise you on the best coverage for your needs.
Get beauty industry insurance quotes here, with coverage available for burst pipes and other major risks. Save up to 25% on your premiums with Provide.