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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118230
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I had a business loss claim from a Hurricane last August. My

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I had a business loss claim from a Hurricane last August. My policy had a exclusion for wind damage but not for power loss. I lost a total of 4 projects first due to power loss which was about a week. Then 2 of them continued because of damage to the office. So my insurance paid 2 of them (the 2 smallest ones) but is trying to get out of paying anything on the 2 big ones by saying that they pulled the projects due to the damage. I am arguing that they should at least pay for the 6 days the power was out.

Any ideas?
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

If they paid two claims due to power loss, then it would be bad faith to refuse to pay the remaining claims of loss resulting from the same power loss. You need to send a letter to the insurer informing them all 4 jobs were lost based on the power outage and that the fact that they paid and agreed on 2 claims their denial now is in bad faith. Under LA law, if you prove bad faith in denial of an insurance claim you can pursue them for your actual damages in excess of your policy limit and also attorney's fees if you have to sue them to pay. Your first step though is writing a letter appealing the denial. Your second step is filing a complaint with the state insurance commissioner. Finally, if the first two steps do not get them to pay, then you would need to sue them for the bad faith denial and breach of your insurance contract to seek your full damages and attorney's fees upon proof of the company's bad faith using the first two claims paid as your evidence of their bad faith.

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Customer: replied 4 years ago.

Thanks for your advice. I figured I had them based on that just did not know the legal lingo. And since these projects usually cannot be broken up they will try to get away with just paying part of it stating that because of damage to my office that is why we lost the contracts. But my argument is we lost it starting with the power loss for a week, after that it really does not matter. Once its pulled, its pulled.

Thank you for your follow up.

If you are correct in that the power loss caused your to lose your jobs, then it does not matter what happens after you already lost the jobs.
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Customer: replied 4 years ago.

They said they are sending me a letter explaining the denial for the two projects and I should wait to get the letter before responding. I know they are going to say that they believe because of damage to my office this is why the two projects ended but the first reason was the power loss, with out power we could not do anything and it was down for a week.

I am not sure how to prepare the letter though. I really don't want to go to court because usually these clients don't want to get involved if it becomes a big problem. They did send me letters at first about pulling the projects. Maybe I can get them to send me some more letters explaining about the power loss part and that would help the insurance to change their stance.

Thank you for your update.

Yes you should wait for the letter and the file your written appeal arguing each of their grounds for denial. Of course, as I said, if you have to go to court with this you must have an attorney representing your business.

In the letter you need to argue that you lost business for the power loss just like the other jobs and I am afraid you are really going to need at least letters with the description of why you lost the work, that is all you can really do other than proceed to court with an attorney
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