Holding Insurance Companies Accountable | Insurance Bad Faith Claims
In today’s hyper competitive business environment, almost no insurance company is going to intentionally engage in bad faith practices. These companies, however, are in the business of making profits for their owners or shareholders, and that motivation can sometimes cause them to cross the line between efficient business practices, and bad faith decisions. When they cross that line, we work aggressively to hold them accountable, and get our clients the compensation they deserve.
Understanding Bad Faith Claims
A single mistake or error on the part of an insurance company does not constitute bad faith. Instead, it must be shown that the insurance company is consistently putting their own desire for profit ahead of the best interests of their clients. This could be shown by pointing out multiple areas where the insurance company is acting poorly with one client, or working with multiple clients that all have a similar experience.
Some examples of actions that insurance companies may perform that could indicate a bad faith case is needed include:
- Delayed Acknowledgement of a Claim – An insurance company should always acknowledge your claim as quickly as possible. Letting you know that they are aware of the claim and that they are working on it is something that can be done very quickly, and even a small delay can be an indication of a problem.
- Performing Biased Investigations – Insurance companies often need to investigate claims to ensure there is no fraud or other illegal events going on. They are obligated, however, to perform an unbiased investigation that looks only at the facts, without unreasonable attempts at getting out of having to pay out on a claim.
- Questionable Interpretation of a Policy – All insurance policies come with extensive terms, conditions, and exclusions on what will and will not be covered. While these documents aren’t always easy to read, they should provide a clear picture of what the coverage offers. If an insurance company is using unreasonable interpretations of a policy, it can be an example of bad faith practices.
- Unreasonable Delay in Payment – Unless the insurance company has stated that they have reason for further investigation or delay, they should issue payments on claims within reasonable amounts of time.
- Other – Any other questionable activities that an insurance company may engage in that can reasonably be seen as hurting the client in order to make additional profit.
If you think you are the victim of bad faith practices by your insurance company, please contact us right away. We can review the specifics of your situation, and help to determine whether or not there is enough evidence to make this type of case. We can also provide you with advice on what you can do to build a stronger case against your insurance company.
