What Is A Bad Faith Insurance Claim?

Some insurance companies are all about their bottom lines and will do everything possible to avoid paying legitimate claims. A bad faith insurance claim refers to an insurer trying to default on an obligation to a client. When policyholders file claims and insurance companies give them the rightfully deserved payment, that money is deducted from the insurer’s potential profits. Some insurance companies resort to various tricks and tactics to make claimants’ lives difficult to avoid lower profit margins. 

Common Examples Of Bad Faith

There are numerous ways in which insurance companies can act in bad faith. You may be eligible to pursue a bad faith insurance claim if:

1. An underwriter agent misrepresented the language of your insurance contract;
2. Your agent deliberately failed to disclose specific policy exclusions or limitations when you were purchasing a policy; 
3. The insurance company neglected to process or pay your claim within a reasonable period; 
4. Your claim was not adequately investigated;
5. Your insurer has been making unreasonable demands to prove a covered loss; 
6. The insurer significantly undervalued your property damage;
7. The insurance company downright refused to pay a legitimate claim; or 
8. Your claim was denied entirely without a sufficient reason. 

An Insurance Company’s Duty Of Good Faith

While insurance companies are held to a high standard, it does not mean that every denied claim rises to the level of bad faith. Sometimes, there can be legitimate situations where your policy does not cover the type of damage suffered. However, an insurance company cannot just do as it pleases to policyholders or others filing valid claims. Insurers are legally obligated to act in good faith and treat tort claims equitably. This duty is based on an implied covenant of good faith and fair dealings between insurers and policyholders. There is often a delicate balance between being hard to deal with and acting in bad faith. Fortunately, claimants have legal rights, and insurance companies can be held liable for acting in bad faith. Whenever in doubt, always carefully review your insurance policy. Suppose you think you have been the victim of an insurance company’s bad faith. In that case, we highly recommend speaking with a practiced personal injury attorney. 

Contact A Super Lawyer Today, If You Suspect That Your Insurance Company Acted In Bad Faith

The average insurance policy is a lengthy, complicated document with numerous exclusions. It is imperative to consult with a highly experienced personal injury lawyer to be aware of the duties that the insurer owes you. The Dietrich Law Firm P.C.’s legal experts can help break down your policy and provide much-needed clarification. Jed Dietrich, Esq., applauded as an American Institute of Trial Lawyers Litigator of the Year. His veteran team of Buffalo, New York lawyers will do everything within their power to obtain the maximum compensation for your bad faith insurance case. Over and over again, the Dietrich Law Firm P.C.’s former clients have insisted that Jed Dietrich, Esq. provided them with the highest possible quality of representation. Kindly see our client testimonials and Better Business Bureau A+ Rating by clicking here. You have absolutely nothing to lose by attending a complimentary consultation with our elite law firm. We are available 24 hours per day and 7 days per week by completing our online consultation form or calling 716-839-3939.