IDEA: Before buying insurance, ask for all of the reasons and possibilities why this specific policy will not pay out.

Ask your insurance broker or agent for a list of reasons why a proposed insurance policy will not pay out in the event of a claim.  What must happen to cause the insurance company to deny your claim?  What are the actions you can take to avoid being denied claims in the future?

Some reasons you may be denied a claim to consider:

1. You missed making a premium payment.
2. You did not report a car accident within the defined time frame. This should have been reported the same day it occurred, at least to the insurance broker.
3. Your driver’s license had expired at the time of the accident. No one asked for a current license inhouse.
4. Your company driver was under the influence. (Your company driver is in trouble. This is one you should remove from the drivers’ list.)
5. Your company driver is not on the covered drivers list.
6. There is a dispute about who caused the car accident.
7. You neglected to tell the insurance company you bought another vehicle so you are not covered.
8. Your driver who had an accident in Mexico is covered but only in the U.S.
9. The company machine in the warehouse that was stolen was not included in an initial list of company machinery and equipment when you initially bought your policy.
10. Maybe the insurance policy covering your building does not cover mold, flooding, insect damage, pollutants, sewage backup, etc.  You may be able to buy other policies to cover these occurences but you must ask upfront.

It is far easier to find out upfront what is missing from the proposed insurance policy, ask for added coverage in some cases and then take preventative measures to ensure you are not denied coverage if you sign up and do have a claim.