What does the "burden of proof" refer to in insurance claims?

The "burden of proof" in insurance claims refers to the obligation to provide evidence supporting a claim's validity. This legal principle requires the party making the claim—often the policyholder—to present sufficient evidence to justify their position and prove that the claim is legitimate. In insurance contexts, it is vital for the claimant to establish that the loss or damage occurred and that it is covered under the terms of the policy. Meeting this burden can involve providing documentation, testimony, or other forms of evidence to substantiate the claim.

Understanding this concept is critical in navigating insurance claims, as the outcome often hinges on the ability to meet this evidentiary standard. If the claimant fails to fulfill this requirement, the insurance company may deny the claim regardless of the circumstances surrounding the incident. Thus, knowing this obligation helps policyholders prepare their claims more effectively and understand their rights and responsibilities under their insurance policy.