How Insurance Companies Underpay Retail Store Claims
Insurers use predictable tactics targeting retail businesses. Understanding these shows why professional representation matters.
Wholesale Cost Valuation Fraud
Fire destroyed $200,000 of inventory at retail prices. The insurer offers $80,000 based on wholesale cost.
They argue you only paid $80,000 for the merchandise, so that's your loss. This completely ignores that you lost $120,000 in profit margins you would have earned.
You bought inventory to sell at retail prices. Your loss is the retail revenue you lost. We document retail values using POS data, pricing records, and comparable market values. We fight for full retail compensation.
Inventory Inflation Accusations
Theft or fire destroyed your inventory. The insurer claims you're inflating loss amounts, suggesting you didn't actually have as much merchandise as claimed.
They demand purchase orders for every item. They scrutinize sales records looking for discrepancies. They accuse you of claiming merchandise you already sold.
We prove pre-loss inventory using purchase orders, receiving records, inventory management systems, and sales data. We demonstrate your claimed losses match documented inventory levels.
Salvage and Damaged Goods Disputes
Water damage affected your clothing inventory. The insurer claims most items can be cleaned and sold, offering minimal compensation.
They refuse to acknowledge that water-damaged merchandise loses retail value even after cleaning. They pressure you to sell damaged goods at steep discounts rather than replacing them.
We document that damaged merchandise cannot be sold at full retail prices. We prove the cost of cleaning, depreciation in value, and lost profit margins justify full replacement at retail value.
Business Interruption Denials
Property damage closed your retail store for 60 days. The insurer calculates business interruption for only 30 days, claiming you reopened too slowly.
They argue you should have opened in a temporary location or completed repairs faster. They refuse to pay lost income for the actual closure period.
We document why repairs required 60 days. We prove temporary locations weren't feasible given your lease terms, build-out requirements, and customer location expectations. We recover lost income for the full recovery period.
Seasonal Loss Minimization
Fire destroyed your holiday inventory in December just before peak sales season. The insurer values merchandise at post-season clearance prices, not December retail prices.
They claim the merchandise would have gone on sale anyway. They refuse to acknowledge you lost the opportunity to sell at full retail during peak season.
We prove merchandise was ordered for December holiday sales. We document historical sales data showing you sell most seasonal inventory at full price. We recover full retail value based on peak season pricing.
Theft Coverage Disputes
Burglars stole $50,000 in merchandise. The insurer disputes the theft amount, suggesting lower values or questioning whether all claimed items were actually stolen.
They scrutinize security footage. They question why more wasn't stolen if entry was forced. They suggest internal theft by employees rather than burglary.
We coordinate with police reports documenting the crime. We prove pre-theft inventory levels using purchase records and sales data. We demonstrate all claimed losses match documented inventory and theft circumstances.
