Nuisance

What Does Nuisance Mean?

In the context of insurance, a nuisance claim is one that the insurance company considers unworthy of serious attention but chooses to pay anyway in order to avoid further dealings with the claimant.

The amount paid is typically less than the amount originally claimed.

Insuranceopedia Explains Nuisance

An insurance company may deem a claim a nuisance if they believe the claimant:

• Is responsible for the accident for which they are filing the claim
• Is at fault, making it not the insurer’s responsibility
• Has not been injured by the accident
• Has been injured but not due to the accident for which they are filing the claim

After a preliminary claim rejection and negotiation, the company may decide to settle the claim by offering the claimant a lower amount than originally claimed. This is done to avoid further hassle, as dealing with the claimant can often be more resource-draining than simply settling for a smaller amount.