When you submit a claim to your insurance company, you expect them to handle it properly. And if you’ve diligently paid your premiums on time, then you probably also anticipate quick payment. Yet, the reality is that insurance companies often look for ways to deny claims and delay payment. After all, they’re in the business of making money, sometimes even at the expense of their customers.
While being treated unfairly by an insurance company is wrong and actionable under the law, in some instances you’ll only be able to secure the compensation and accountability you deserve if you take legal action. The insurance company isn’t going to come out and say that they’re in the wrong, though. Therefore, if you feel like your claim has been mishandled, then you should be on the lookout for signs that your insurance company has acted in bad faith so that you have the evidence needed to proceed with a legal claim.
By law, insurance companies are supposed to handle claims in good faith, meaning that they’ll engage in the claims handling process in an honest fashion. But if you experience any of the following, then there’s a chance that your insurance company is operating in bad faith, which can give rise to legal action against them:
- Excessive delays: Your insurance company should be diligent in handling claims. When they unnecessary delay the processing or payment of your claim, then there’s a chance that they’re doing so in bad faith. Try to get a handle on your insurance company’s internal processing practices and timelines, which might be indicated in your policy. Also, be cognizant of the fact that continuously asking for more information or seeking extensions at the last minute could be indications that bad faith is in play.
- Multiple assessments: It’s reasonable for an insurance company to assess the damage caused so that they can determine an appropriate payout amount. But the insurance company shouldn’t have to keep visiting you to investigate something that they’ve already assessed. If they’re doing this, then they may be trying to wear you down and draw out the process as much as possible so that they can save money at your expense. Also, lookout for professionals who seem to side with the insurance company despite evidence to the contrary.
- Confusing denial justifications: When a claim is denied, the insurance company should be clear in its reasoning. A poorly explained or confusing justification may mean that the insurance company really doesn’t have a good reason for denying a claim, which is a sign of acting in bad faith.
- Lack of investigation: If your insurance company fails to thoroughly investigate your claim, then they might be on a fast track to denial without proper justification.
- Blaming the claimant: One of the easiest ways for an insurance company to try to get out of paying a claim is to simply place the blame on the claimant. This could include accusing the policyholder of causing the damage at hand or failing to abide by the claim procedures outlined in their policy. Either way, you need to ensure you have evidence showing how you’ve acted properly so that you can then highlight how the insurance company has acted in bad faith.
If it goes unchecked, insurance bad faith can rob you of the compensation you deserve. You certainly don’t want that to happen, which is why it’s critical that you understand the law