If I leave work today and hit a bus full of orphans, the insurance company got a bad deal.The insurance companies know this.

I do not think people are trying to abuse you, but trying to point out other perspectives.

We're learning as we go, just jumping into things and our first commercial loan application was denied.  

One more thing to maintain, one more thing for them to abuse.

I offered terms, but they denied.

Even run through the numbers with them whenever you consider a new purchase (whether it be real estate or any other credit) to understand how it will affect your future purchasing power.8) You're all set to purchase a property, but are denied because a) you don't have two years of work history in the same career or b) your future income is not predictable. 

Those companies almost always look for a way to deny the claim.

If so, that may be another reason why you were denied hard money funding.

Will they counter you like a seller will or do they just deny the offer on the property?

Remember too that wiring has a date code on it and if something should happen such as electrical fire, the insurance company can and will deny the claim if it was done by an unlicensed person.