$13.6 Million Jury Verdict for Small Business Denied Insurance Coverage

A lot of people have problems with their insurance companies even when they have legitimate claims. Insurance companies work slowly, and the processes they use are mostly to deny your claim, even though in fact the insurance company has a legal obligation to find coverage for you. Instead, they find ways to deny your claim from the outset. There are things we can do to help you with your claims and potential claims.

We took the case of a small manufacturing company in a small town in Alabama. In their heyday, they were a successful small business, and they were even honored by the President as a great example of a small business. But their business had been suffering and they had the idea of importing products to try to turn a profit again. They had these products in their warehouses when a huge fire started, resulting in a 15 to 20 million-dollar loss.

Instead of paying their claim, the insurance company accused this family-run business of arson. First they accused the father, an 85-year-old bedridden man with a catheter, of arson. When that didn’t work, they accused his wife, and then his son. This family was investigated and cleared by the ATF, and they were cleared of all charges, but still the insurance company did not want to pay.

When the insurance company couldn’t prove arson, they tried to deny the claim anyway by saying the family hadn’t cooperated with their investigation, even though they’d cooperated for over two years, supplying 60,000-70,000 pages of ledgers, receipts, phone bills, everything. They still denied the claim. We went to court for the company and won a 13.6 million-dollar verdict.