Understanding Bad Faith Insurance Claims

If an insurance company denies a policy holder’s claim without a clear reason, the insurance company may be acting in “bad faith.”

After an accident or catastrophe, an insurance adjuster will evaluate the damage. Adjusters are trained to investigate situations and look for reasons that could justify denying personal injury claims. The line between acting in good faith and bad faith is very thin because they will often try to settle for less than what your claim warrants.

In his book How to Win Your Personal Injury Claim, attorney Joseph Matthews explains: “Because your policy is a paid-for promise by your insurance company to provide you with insurance protection, the company has a duty to provide that protection and to negotiate and settle claims in good faith.”

If you can prove that your insurance company either wrongfully denied your claim or manipulated the law in order to give you less than you deserve according to your insurance policy, you may have legal grounds for prosecuting them for bad faith.

Here are some specific strategies insurance companies use in bad faith claims:

  • Refusing to investigate or not fully investigating your claim
  • Not providing a clear explanation as to why they denied your claim
  • Refusing to negotiate a settlement once you’ve filed your claim
  • Being slow to respond as to whether your claim was accepted or denied

If you’ve been a victim of a bad faith insurance claim, we want to help you get the compensation and coverage that you deserve. To find out more about bad faith and how to file a lawsuit against your insurance company, check out our Knowledge Center article: “Bad Faith Lawsuits – Holding Insurance Companies Accountable.”

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Categories: Insurance Disputes
Tags: bad-faith insuranceinsurance disputeworkers' comp insurance
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