When people buy insurance, it’s because they want a peace of mind that they’ll be covered in case an accident happens. Of course, most people hope that they never need it, but expect to be taken care of by their insurer based on the terms of their insurance policy if they do. Unfortunately, insurance companies are in the business of profit, and may commit bad faith if it means they can save money. If you believe your insurer has acted in bad faith in regards to your claim, then it is in your best interest to talk with a law firm right away.
Bad Faith Insurance Practices Explained
Insurance companies that deny, underpay, or delay an insurance claim for unjust reasons, are committing bad faith. While the policyholder may realize this is happening, they may not be sure how to respond. We recommend meeting with a lawyer who is experienced in handling these types of situations from a law firm like Brown Kiely LLP.
During your consultation your lawyer will discuss with you how insurance companies have a duty that exceeds just what is listed in their contracts. Insurers must act with good faith and deal with their policyholders claims in a fair way.
Signs of Insurance Bad Faith
If your insurance company is purposefully acting in bad faith, then as a policyholder you may be entitled to receive damages. The intention of awarding you damages is to compensate you as an insured party, in addition to holding the insurance company responsible for their unfair business practices.
If you observe any of these signs as your claim is being handled, then we advise you to contact a law firm in Bethesda, MD immediately:
- Lack of Communication: An insurer may try to avoid talking with their policyholders after receiving a claim, as a way to prevent from paying. An insurer that is acting in bad faith may claim they never got your claim, failed to perform proper investigation, or failed to move forward with handling the claim entirely.
- Denying a Claim Without Sufficient Cause: An insurer who acts in bad faith may reject coverage for a claim, in hopes that the policyholder will accept this and not pursue an appeal. If you were wrongfully denied claim coverage, then you can challenge the decision and fight for a deserved settlement.
- Delaying Payment on a Legitimate Claim: Your insurer may try to slow down handling the claim in hopes that it will not lead to a fair settlement. For instance, an insurer may make the policyholder fill out piles of paperwork that is unnecessary just to delay giving payment.
- Pressure Policyholder to Accept Low Settlement: An insurer may pressure the policyholder to agree to a settlement that is far below what is truly deserved. The insurance company may make the person feel like there is no other offer available and that it must be accepted within a short period of time.
Victims of bad faith behavior by their insurance company are encouraged to get legal help without hesitation, by contacting a law firm like Brown Kiely LLP for advice on what to do next.