Bad Faith Claims and Insurance Tactics
We want to believe that the world is full of honest people. We want to believe that an insurance provider would be honest, fair, and act on our best interests. But the sad reality is not everyone is honest, not even insurance providers. So what do you do when an insurance provider acts in bad faith? Keep reading to find out.
What is Insurance Bad Faith?
When an accident happens, the insurance company is required to investigate, negotiate, and settle all claims in good faith. This means that they handle everything fairly, honestly, and in good faith, so the other party isn’t prevented from getting the benefits of the contract.
If an insurance company acts dishonestly or violates their duty in any way, they can be held liable for bad faith acts. Bad faith claims can be considered torts because they harm someone.
Examples of These Tactics
Here are some examples of bad faith claims.
- Delaying Payment Of A Valid Claim: Claims must be paid within a reasonable time frame. If the insurance company has approved your personal injury claim but has delayed the claim payment for no good reason, you may have a bad faith claim against the insurance company.
- Denying A Claim Without Giving A Reason: If your valid claim is denied after your accident, the insurance company should provide you with a reason why. An invalid reason or no reason at all gives you the right to file a bad faith claim against the insurance company.
- Failing To Conduct An Adequate Investigation Into A Claim: The duty of the insurance company is to provide a prompt and thorough investigation for your accident claim. If the insurance company has conducted a lazy investigation or delayed the investigation for no good reason, you can file a bad faith claim against them.
- Making Threatening Statements: An insurance company should never make a threatening remark toward a policyholder or third party who file accident claims. The insurance company should always act in a fair, professional, and respectful manner toward everyone involved. If the insurance company has made any threats against you, immediately contact a good personal injury law firm to file your claim.
- Misrepresenting The Law Or Policy Language: Sometimes it’s hard to understand insurance language, so it is the duty of the insurance company to accurately tell us what it means. If they have intentionally misrepresented their language or law, you may have a valid bad faith claim against the insurance company.
- Offering Significantly Less Money Than A Claim Is Worth: During negotiations, an insurance company will try to low-ball the settlement amount. If the insurance company refuses to budge from that low-ball settlement offer, it can be viewed as an act of bad faith. If the insurance company offered you a significantly less amount than your claim is worth, you have a claim against them for acting in bad faith.
- Refusing To Pay A Valid Claim: If you filed a valid claim after your accident that your policy or the other party’s policy covers, then there is no reason why you shouldn’t get paid for it. But if the insurance company refuses to pay, then they can be held liable for acting bad faith.
- Refusing Requests For Documentation: There is no reason why an insurance company should withhold documents from you. If they refuse to provide you documentation, then you have a bad faith claim on your hands.
An experienced personal injury lawyer in Florida will be able to help you figure out when you have a bad faith claim on your hands and what steps you should take with this case. If you have a valid claim, there is no reason you shouldn’t get paid the compensation you deserve. So if you have a bad faith claim on your hands, don’t hesitate to find a good personal injury law firm and get your case started.