Why do insurance companies deny claims? Unfortunately, there is no easy answer. It would depend on your situation.
Insurance companies are large, bureaucratic organizations. However, you should know that they are not the final authority when it comes to your injuries. That is a good thing, for reasons that you will discover later on in this article.
Errors when filing a claim
As explained by FindLaw, filing an insurance claim is one of the first things that you were likely to do after an accident. That means that you will probably not be in the best state of mind when you make your initial report.
Errors, omissions and oversight in your initial claim could result in a denial. The insurance companies will probably work with you to make sure this does not happen, but they might not catch everything.
Mistakes in the insurance company
Even if you file your claim correctly, there is still a chance for an error. Insurance workers are only human, after all. They might also make mistakes when reviewing your claim, resulting in an inappropriate denial of benefits.
Bad faith insurance
If you deserve benefits for your injury, you should get them. Assuming that you did not make a mistake, the insurance company did not make a mistake and you deserve coverage, a denial does not make sense.
However, you might still receive a denial if the insurance company is operating in bad faith. Fraudulent or unscrupulous ensures sometimes issue policies when they have no intention to fulfill their obligations. They believe that you will decide not to put up a fight or that they can simply use legal loopholes to escape paying benefits.
For an insurance company, your injury is a financial cost. For you, it is a life-changing tragedy. You deserve what they promised, even if it is bad for their business.