Picture this. A storm damages your kennel block. Or your grooming van is broken into overnight. You make a claim, expecting your insurance to be there when you need it. Then the email lands. It says “no”.
It’s a horrible feeling.
The good news is that there are some common reasons why an insurance claim may not be paid, and many of them can be avoided by making sure your cover is right and keeping your insurer up to date.
So let’s look at the most common reasons…
Jump to:
1. The policy doesn’t cover what happened
2. The problem existed before the policy started
3. Your business has changed, and your insurer hasn’t been told
4. A policy condition wasn’t met
5. The claim was made too late, or you can’t prove what happened
What if my claim is turned down?
A five-minute check before your next renewal
Why claims get turned down
Insurers don’t decline claims for fun. They decline them when something in the policy means they don’t have to pay.
The Financial Ombudsman Service lists reasons including the event not being covered by the policy, the claim being made too late, the cover having ended, information not being provided when the policy was taken out, or a policy condition not being met.
For animal businesses, these can play out in some very particular ways. Whatever your type of business, there are some common things to watch out for.
1. The policy doesn’t cover what happened
Every policy has limits and exclusions. It’s the bit nobody enjoys reading, so it’s easy to assume you’re covered when you’re not.
Here’s how that might look in real life:
- A dog walker starts offering day care at home, but their policy is for walking only.
- A groomer starts offering a new service that isn’t covered by their existing policy.
- A home boarder takes in more dogs than their policy allows.
None of these people necessarily did anything wrong. Their business simply changed, but their insurance didn’t change with it.
Quick fix: Ask us, “What isn’t covered?” It’s a question we’re always happy to answer. Our customer service team can talk you through it.
2. The problem existed before the policy started
Insurance is designed to cover unexpected events that happen during the period of cover. It generally isn’t designed to cover something that had already happened, or a problem you already knew about, before the policy began.
For example:
- A piece of equipment was already damaged before you took out the policy.
- You already knew about a dispute with a customer when you arranged your legal expenses cover.
- Your building already had damage or a problem before the policy started, and this later leads to a claim.
That doesn’t necessarily mean a claim will always be declined just because something existed beforehand. What matters is the wording of your policy, what you knew at the time, and whether the issue is covered.
It’s important to be open with your insurer or broker about anything you already know about when arranging or renewing your insurance. If you’re unsure whether something could affect your cover, it’s always better to ask.
Quick fix: When taking out or renewing your policy, think about any existing problems, incidents, disputes or damage that could potentially lead to a claim. If in doubt, tell us and we can help you understand whether it could affect your cover.
3. Your business has changed, and your insurer hasn’t been told
Business insurance is based on the information you provide about your business. If something important changes, your insurer may need to know.
So what counts as a change? Think about:
- More animals, more staff or more clients.
- A move from a van to a salon, or from the house to a unit.
- A new service, like boarding, training or a pet taxi run.
- New buildings, new equipment or a second site.
Don’t assume that because you’ve been insured for years, your existing policy automatically covers everything your business does today.
Quick fix: A quick conversation with us can help you understand whether a change needs to be added to your policy.
4. A policy condition wasn’t met
Policies often come with rules you have to follow. They might relate to locks, alarms, security, licences or how your business operates.
The Financial Ombudsman Service has shared cases where a claim was declined because a policy condition relating to security hadn’t been met.
Now think about your own business. Clippers and dryers left in an unlocked van overnight. A kennel gate that doesn’t shut properly. A boarding business operating without the required licence.
In England, home boarding, dog day care and kennel boarding all need an animal activity licence from your local council. Other parts of the UK have their own rules, so check with your council.
Quick fix: Read the “conditions” section of your policy. Then ask yourself, “Am I meeting these requirements?”
5. The claim was made too late, or you can’t prove what happened
Tell us as soon as something goes wrong. Waiting can make a claim harder to settle, and some policies have specific time limits for reporting incidents or making claims.
Proof matters too. If there’s a dispute about how or when something happened, evidence can make all the difference.
Good records can include:
- Photos of damage, before and after.
- Receipts and records of your equipment.
- Booking diaries and client messages.
- Police crime numbers, if there’s been a theft.
You don’t need to be perfect. Just keep useful records somewhere safe and report incidents as soon as you can.
What if my claim is turned down?
Don’t panic. You still have options.
First, ask for the reason in writing. It should explain why the insurer has declined the claim and refer to the relevant part of your policy.
Then talk to us. We can help you understand the decision and what to do next.
If you’re still unhappy, you can complain to the insurer. After that, many small businesses can take the complaint to the Financial Ombudsman Service, which is free to use.
A five-minute check before your next renewal
Grab a cuppa and run through this list:
- Read your policy summary. What’s covered? What isn’t?
- Think about what’s changed. New services, animals, vehicles, staff, equipment or buildings?
- Check your conditions. Locks, alarms, licences and any other requirements.
- Think about existing problems. Is there anything you already know about that could potentially lead to a claim?
- Save your insurer or broker claims number in your phone. You’ll be glad it’s there.
The bottom line
Claims can be declined for ordinary reasons. The event might not be covered, something may have changed without your insurer knowing, a policy condition might not have been met, or a problem may have existed before the policy started.
None of this is about being careless. It’s about making sure your insurance keeps up with your business and understanding what your policy requires.
A little time checking your cover now could help avoid an unwelcome surprise when you need to claim.
Not sure whether your cover still fits your business? We offer a free, no-obligation insurance audit for animal-related businesses. We’ll take a look at your existing cover, talk through any changes to your business and highlight anything you may want to review.
This guide is general information, not financial advice. If you’re unsure how your cover works, the right next step is a conversation with your broker or insurer.