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How to Find Out an Insurance Claim Truth

When Something Just Doesn’t Seem Right in an Insurance Claim

Insurance companies deal with all sorts of claims. One of the toughest jobs in this regard is to sift through and gather the facts as they relate to acceptance or denial of the claim.

Related: frequent questions about Ocean Cargo Insurance

Here’s one example that demonstrates the research insurance professionals put into a claim.

Case in Point: A Domestic Cargo Insurance Claim


A trucking company filed an insurance claim about damages that allegedly amounted to $450,000. According to the insured, there had not been enough of tarping on an extended lowboy trailer when it took its trip loaded with milling equipment. The long haul from Jacksonville FL all the way to Long Beach, CA under rainy conditions resulted in rusted equipment. The driver acknowledged that some of the tarping had loosened, but nothing significant – certainly not enough to cause so much oxidation as reported in the claim.

Although the insurance adjuster’s inspection confirmed the extensive damage as a result of rainwater, something seemed amiss. A 4-day trucking trip even under very rainy conditions just wouldn’t cause so much rust damage.

Upon noting this to the warehouse boss, the man called in his assistant manager who had been on top of the previous inspection by the manufacturer. When the insurance company’s adjuster asked to be given a recorded statement by the junior manager about the condition of the cargo as it was received in the yard, the manager appeared uneasy. It was when the adjuster clarified that any statement made by the assistant manager would be received under penalty of perjury that the manager admitted there had been an exaggeration in his analysis of the damages. The equipment in fact had already been somewhat oxidized before it was shipped.

The adjuster then began to determine the genuine water damage that the equipment incurred. The resulting amount came to less than $10,000. Of course, this was significantly lower than the $450,000 that had initially been claimed.

Another well done job by the insurance industry!


PRIME Insurance is a three-generation family-run independent agency that does direct business with more than 40 of the leading companies. We partner with big industry names such as ACE, ASI, ASSURANT, CHUBB, FOREMOST, Liberty Mutual, MetLife, PROGRESSIVE, Safeco, StillWater, Travelers, USLI, ZURICH and more to bring you tailored coverage at competitively lowest quotes.

PRIME Insurance provides all  forms of coverage throughout NJ, NY, PA and other US states, including travel, auto insurance, commercial umbrella insurance, flood insurance, renters insurance, property insurance, homeowners insurance, bonds, workers comp, life insurance and more. We invite to you to HAVE A PRIME DAY™ by visiting us on our online insurance website; or by contacting us at PRIME [at] primeins [dot] com or 732-400-5242!

Summary: Insurance companies put in a great deal of effort in determining if your claim should be accepted or denied.


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