Business Insurance Bad Faith

Flood Damage

In an odd twist of irony, the Noah’s Ark encounter sustained flood damage. Yet, the park’s insurer refused to cover the damage. Is this a business insurance bad faith case?

Noah’s Ark Encounter

Is a Bible-themed park. The park uses information from the Bible to recreate Noah’s Ark. The Bible says the ark held two of every animal, plus Noah’s family. Those on the ark survived the great flooding, everyone and everything else perished. Noah’s Ark Encounter is located in Kentucky.

Rain Damage Coverage

The entrance road to the Ark Encounter was damaged by a landslide. Additionally, the Ark itself was also damaged. The damaged road and Ark created a danger. Also, Noah’s Ark Experience lost income. The business filed an insurance claim to pay for repairs.

rain damages denied by insurance - bad faith lawyer

Insurance Coverage

Noah’s Ark Encounter filed a claim with their insurance. Engineers recommended specific repairs, which the park completed. But, their insurance only covered part of the $1 million in damages.
Insurance claims the policy excluded improvements, which were needed to prevent future problems. The insurance company claims the improvements fixed existing design problems. Despite the large expense of the repairs, insurance only paid a small amount.

Insurance Bad Faith

Bad faith happens when insurance fails to pay a valid claim. It can also happen when insurance fails to settle a lawsuit within policy limits. We call this, insurance bad faith.

Acting In Bad Faith

When business insurance acts in bad faith it can cause a lot of damage to a company. We’ve met business owners that have lost a lot because of delays and denials of valid claims. Don’t let this happen to you. If insurance denies your claim, get legal advice.