If you read the paper or watch TV, you know that insurance companies often get a bum rap. But, an insurance company is a business just like any other. An insurance company has employees to pay and needs to make a profit to stay in business. We don’t deny that right to any other company, so neither should it be denied to insurance company.
If a particular insurance company doesn’t make a profit, it won’t be in business very long. If it isn’t in business, it is the insurance purchasing public that suffers. Therefore, it is in all of our best interests for insurance companies to do well financially. Insurance companies often get the reputation of denying all claims. There are laws in place to prevent insurance companies from wrongfully denying claims. But, insurance companies must evaluate all claims to determine whether each is covered under the policy at issue. Insurance companies receive premium for the policies they issue.
The insurance companies determine the amount of premium based on their evaluation of the risks they are insuring. They cannot pay losses that were not insured – they did not receive premium for losses that are not covered under the policies and would quickly go out of business if they paid uncovered claims. For this reason, they are not the “devil in disguise” when they evaluate and deny claims. Rather, they are doing their job, which is to pay covered losses and deny uncovered losses. By denying claims that are not covered, the insurance company is working hard to maintain its profitability and stay in business – a benefit for us all.
EINSURANCE recommends you shop around with an open mind for an insurance company that will cover your needs.