Insurance companies are meant to be on our side. The whole idea is that we pay out for a policy to cover us in the case of an emergency, and then that company pays out the appropriate amount to cover damages. The process should be quick and easy when insurance companies act in good faith. They should review all the evidence and details of a claim, conclude in good time, and have the money in your account as soon as possible. The problem is that insurance agencies are businesses, not charities. They don’t want to pay large sums for disasters if they can help it. That, unfortunately, leads to providers acting in bad faith and letting policyholders suffer. Anyone caught up in this situation can work with a lawyer to sue the agency and finally claim what’s deserved.
Examples Of Actions Leading To Bad Faith Claims
1) The insurer refused to pay out on a claim that should have been covered under the terms of a policy. Every insurance plan has set clauses that determine the exact level of coverage and the type of plan users are on. Someone who pays a higher premium for comprehensive coverage will rightly assume they’re covered for most situations. However, some companies will conveniently ignore factors in these plans if it’s in their best interests.
2) The insurer misleads policyholders about the terms of the policy to avoid payment. There are two ways this can happen. Often, insurers adapt the meaning of a clause in an existing policy to convince customers they can’t make a claim. That’s why it’s so important to have a copy of a policy for reference. Providers can also use false advertising tricks to suggest customers will have access to coverage that doesn’t actually exist.
3) The insurer refused to consider certain pieces of evidence in a claim to avoid paying out. Insurance agents working on claims have to take every piece of evidence into account, even if it’s so damning that they’ll have to pay out thousands. Claimants can use photographic evidence of property or vehicle damage and suddenly find it dismissed as unsuitable for the claim.
4) The insurer terminated the policy before they could pay out for a pending claim. This one has to be one of the shadiest reasons insurers act in bad faith. An easy way for providers to avoid paying customers is to take them off their books. Cancelling a policy means no more obligation. However, this is completely unfair if a customer is in the middle of a claim.
5) The insurer agreed to pay for the claim but only did so for a low figure. As mentioned above, insurance companies don’t want to pay out large figures to claimants when they can be taking monthly payments instead. Those who act in good faith will access a claim and determine a fair outcome, while others will try to reduce the payout for some reason. You can challenge a low-ball offer that’s obviously unfair.
6) The insurer agreed to pay for the claim, but only after an unfairly long period. Time is a massive influencing factor in these bad faith insurance cases. Dragging out the process can cause further pain and suffering to people dealing with debt and anxiety from floods, fires, injuries, or any other trauma.
7) The insurer failed to reach any resolution after a long waiting period. Sometimes, these cases can drag on for months, with providers claiming to be working on a case, only for them to not provide a clear resolution. They have a responsibility to ensure there is some form of decision, even if it’s one claimants don’t like.
8) The insurer didn’t respond at all. Lastly, there are times when insurance companies receive an insurance claim for an accident but never get back to the claimant. This is unfair if there’s a strong case for a payout and if claimants are suffering financially from property damage, injury, or financial loss.
How Can a Lawyer Help You Fight Back Against Insurance Companies?
The factors above are all considered unfair and examples of bad faith misconduct by insurance providers. The good news for all those on the receiving end of this treatment is that there are legal teams ready to help you sue for damages. Here’s how an insurance bad faith lawyer can help.
The first step in any legal defense like this is to gather evidence. You might think that this will be impossible when working with skilled insurers keen to cover their tracks. Still, the right legal team will be able to uncover all the right legal jargon in your policy and other factors that could end up proving the insurer lied, withheld information, or simply acted out of your best interest. Together, you can work on compiling everything you have to win the case.
The whole point of this file of evidence is to try and win damages in some way. Your new lawyer will be able to craft a claim based on your situation and the evidence provided. They will have the skill to bring the courtroom on your side and show the insurance provider to be a sneaky operator with profit in mind. Those damages can include compensation for expenses paid dealing with an issue or the strain or fighting for your rights to an insurance claim.
Don’t Let Insurance Companies Get Away With Bad Faith Misconduct
The bottom line here is that you can sue for damages when mistreated by an insurance company, and you do have the potential to get a decent amount of compensation. It all depends on the circumstances, the evidence you have, and the insurance lawyer on your side. Don’t sit back and let these companies get away with denying you what you’re legally owed, however unlikely a win may seem. The best bad faith misconduct lawyers can help you get justice. So, give your local firm a call, explain what’s going on, and get started on building a case.
