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Dawson and Rosenthal
Dawson and Rosenthal

How do Insurance Companies Treat Claims?

Individuals and businesses pay high costs each year, believing that when a disaster occurs, their insurance company will be there, picking up the pieces and covering the damages. After paying a deductible, their coverage will take care of the loss. However, many policyholders are met with shocking responses to their claims, leaving doubt as to why the insurance company offers little to no help after timely payments of their insurance.

Many insurance policyholders become disheartened and discouraged by the service they receive from insurance companies with demands of overwhelming paperwork, poor responses, and even claim denials. Insurance bad faith should be addressed, and your claim should be adequately compensated. Understanding the insurance industry and how claims are treated can better prepare individuals and businesses to take a proactive stance against these practices.

Profits Remain at the Forefront of Insurance Companies

Like any business, insurance companies benefit and grow from increasing profits. One of the surest ways to increase profits is to reduce the amount and number of claims paid out. Failing to respond, stating false information about a policy, undervaluing damages, or denying payment for a claim are a few tactics insurance companies use to reduce settlement claims, increasing their profit.

Property damage claims are often met with the same tactics, leaving property owners at a loss, struggling to understand why they are being saddled with the cost of repairs when the belief was that the insurance company was on their side. Whether the struggle is to have a health insurance claim settled appropriately or a personal or business property claim is denied, relying on trusted Insurance law attorneys can make a difference in how an insurance claim is treated.

Why Work With an Insurance Law Attorney?

Hiring an attorney may feel like a drastic measure, but it is vital to understand that insurance companies have experienced lawyers and claims adjusters in their corner working diligently to protect their interests. An individual may only encounter what seems to be a helpful adjuster on the other end of a phone call, but behind the decisions to pay a claim are teams calculating to protect their clients and ensure better profits.

Working with a knowledgeable bad-faith insurance attorney to address issues with paperwork, communication, stalled processing times, or other challenges you face sets a precedence that you take your compensation seriously. States like Arizona and California have established laws to address bad-faith insurance. What compensation can you recover from an insurance company when a breach of duty of good faith occurs?

  • Compensation for the claim that is owed you
  • The cost of legal fees

When large companies refuse to pay legitimate claims or vastly undervalue a claim, failing to follow the doctrine of utmost good faith, relentless representation is required. Individuals and businesses are no match for these giants and their teams of legal counsel. Legal advocates striving to level the playing field are necessary to protect your best interests and prevent potential financial hardship.

Ensuring Fair Treatment of Insurance Claims in Arizona and San Diego

When you file an insurance claim that is met with poor treatment or denial from the insurance company, take action immediately. They hope that frustration and overwhelm will win out, causing you to accept their undervalued claim settlement or go along with their denial. Dawson & Rosenthal, P.C. offers a free consultation to begin the process of ensuring your fair treatment and compensation.