Case Study: Raising Hail After the Storm

BUSINESS: Childcare center

EMPLOYEES: 35

THE CHALLENGE: A massive hailstorm in the summer of 2016 in Colorado Springs, Colo., resulted in tens of thousands of auto and homeowner insurance claims totaling more than $350 million. It was one of the most damaging such storms ever recorded. The insurance company agreed to cover $54,882 in damage to our client’s building but its claims office declined to pay for thousands of additional dollars in damage to outdoor furniture and toys.

OUR SOLUTION: The list of items damaged included small picnic tables, tubs, rockers and a large playhouse. Toys to most, these items are critical to any childcare center’s business operations. The insurer, in denying the claim, said it would not cover toys left out in the open. We responded with an appeal, based on the idea that the insurance company was not acting in good faith.

Among other items, we noted that the policy included coverage of up to $50,000 in outdoor equipment and, critically, did not specify that mobile outdoor playground equipment would be excluded. Moreover, the policy did cover outdoor furniture, which we asserted should include playground equipment that the children could sit on. Also, because the equipment was part of our client’s business, we believed the claim was valid because the policy covered outdoor furniture that is used to “service the building.” Finally, we pointed out the inconsistency in the fact that the insurance company had agreed to pay for damage to our client’s greenhouse on the property, even though the policy did not specifically list it.

THE OUTCOME: Our claims advocacy effort began immediately after the insurance company issued its denial. Our attention to the fine print and ability to push for a better result yielded just what we hoped: a reversal and, ultimately, victory for our client. The insurance company acquiesced, paying the full claim, which allowed our client to get back on its feet and back to business.

Want to learn more? Contact Insurance Advisor Joaquin Escobar at 720-212-2054 or JoaquinE@thinkccig.com.

CCIG is a Denver-area insurance brokerage with the full-service capabilities of a national brokerage. We do more than make sure you have the right policy. We also help you manage your long-term cost of risk with our risk and claims management expertise and a commitment to service excellence.

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