Steps to Take After a Denied Claim
Planning an event involves months, or even years, of careful preparation, coordination, and financial investment. For many individuals and organizations, event cancellation insurance—or contingency insurance—provides a safety net in case unexpected disruptions lead to cancellations or significant changes. However, what happens if your event cancellation insurance claim is denied?
This blog will guide you through understanding this type of insurance, the common reasons claims get denied, and the steps you can take to dispute an unfair decision. If you’re dealing with insurance disputes in Littleton, CO, Curtis | Walton Law is here to help.
Understanding Event Cancellation Insurance (Contingency Insurance)
Event cancellation insurance, or contingency insurance, protects against financial losses from event disruptions. It covers non-recoverable expenses like deposits, venue fees, vendor costs, and advertising if an event is canceled or postponed due to unforeseen circumstances.
Policyholders often include event planners, couples planning weddings, corporations hosting conferences, and nonprofits organizing fundraisers. Covered events range from weddings and trade shows to concerts and festivals.
This insurance helps with unexpected issues such as severe weather, illness, or equipment failure that prevent an event from happening as planned. However, making a claim and securing compensation can be challenging if insurers deny claims due to technicalities or disputes.
Top Reasons Claims Are Denied
Misinterpretation of Policy Terms
One common reason for denial is misunderstanding the policy’s terms. Event cancellation insurance policies are often written in complex language, leading to confusion about coverage. Disputes can arise if an insurer claims a situation isn’t covered, even when it seems like it should be.
Claim Filing Errors or Missed Deadlines
Filing a claim can be complex, with insurance companies requiring strict documentation and deadlines. Missing documents, incomplete information, or late submissions can lead to denial. Keeping accurate records and carefully following the process is key to avoiding this.
Exclusions or Force Majeure Conflicts
Policies often include exclusions that can complicate claims. For example, many event cancellation policies exclude damages from severe weather, pandemics, or strikes. These gaps, known as force majeure conflicts, can leave policyholders exposed. Knowing these exclusions before filing a claim is key to a successful submission.
Steps to Take After a Denied Claim
If your claim is denied, it’s vital to act swiftly and strategically. Follow these steps to position yourself for a successful resolution:
Review the Denial Letter Carefully
The first step is to understand why your claim was denied. Read the denial letter carefully to identify the reasons cited, such as exclusions, errors, or vague policy terms. Take notes on the reasons and seek expert advice if anything is unclear.
Gather All Documentation
Successful disputes depend on documentation. Gather all relevant records, including vendor contracts, cancellation notices, emails about the disruption, receipts, policy documents, and insurer correspondence. Highlight evidence that supports your claim.
Consult a Legal Professional
Insurance policies are full of confusing technical language. Consulting a legal professional early can help you avoid mistakes, build a stronger case, and push back against insurers. Lawyers understand insurance law and know how to show why your claim should be approved.
How a Lawyer Can Help You Dispute the Denial
When insurance companies deny event cancellation claims, it’s not just about money—it’s about holding them accountable to their contractual obligations. A knowledgeable insurance dispute attorney in Littleton can help you explore options for recourse and resolution.
At Curtis | Walton Law, we review your policy and denial letter to assess the insurer’s claims. We then determine the best approach, whether through negotiation, mediation, or litigation. Our goal is to ensure you’re not left with the financial burden of a canceled event. We build strong cases using evidence to fight unfair denials and protect your rights.
Don’t Let Your Insurance Company Walk Away Without Paying
When your insurance company denies a legitimate claim, walking away can cost you financially and let insurers avoid accountability. Taking action protects your interests and holds insurers to fair practices. Remember, you have rights and don’t have to accept an unfair denial.
If your event cancellation insurance claim has been denied, Curtis | Walton Law is here to help. Our skilled attorneys have extensive experience in insurance disputes in Littleton, and we’re ready to fight for the compensation you deserve.
Don’t wait—contact us online or call (720) 815-4402 today to schedule a free 30-minute consultation and take the first step toward resolving your dispute.