San Diego Commercial Insurance Policies Bad Faith
Commercial business owners know the importance of carrying insurance to cover their investments. Things can go wrong in an instant, leaving the entire company in a bind. How will you pay the bills? How will the employees get their paychecks? All this can come crashing down with one small accident. Commercial insurance is the safety net that keeps businesses afloat in times of turmoil and natural disaster. When a commercial insurance company acts in bad faith and refuses to pay, it can be devastating to a business. If you find yourself in this situation, talk to one of our San Diego attorneys.
Business insurance policies cover everything from floods to damaged inventory. They ensure California businesses keep their investments safe. Insurance policies require a purchase in good faith, with the business owner paying money directly to the insurance company with the promise that if something ever occurs in the business, the policy will be there to pick up the pieces. When the insurance company denies such a claim, at best the entire business is put on hold, at worst, it can mean the end of a business.
Common Commercial Insurance Policies Regarding Bad Faith
San Diego business owners typically hold one insurance policy that covers the entire business structure or a few insurance policies for different parts of the company. A few examples of common commercial insurance policies include:
- Comprehensive general liability insurance
- Theft protection
- Property damage
- Legal protection from pollution liability
- Operation insurance
- Insurance related to the costs of having employees in the business, such as workers’ compensation, payroll insurance, and health insurance coverage for employees
- Business disruption insurance
- Natural disaster insurance
- Insurance in case of a shooting or terrorist attack
These different policies work together to protect the business from major disasters or unforeseen circumstances.
If something goes wrong, having the insurance payout to cover the day-to-day expenses is critical. The loss of income for all the employees, the loss of income for the business, and the possible loss of inventory and property damage can take their toll. If the insurance company does not provide per the policy strictures, it can mean the end of a business. A commercial insurance bad faith claim helps get things back on track.
Examples of Commercial Insurance Bad Faith
Insurance bad faith, or insurance fraud, happens when the insurance company responsible for the policy does not uphold its end of the deal. This can be because of:
- Delaying payments
- Denying claims without giving a reason
- Delaying investigation into the claim
- Making false statements about the claim
- Offering settlements that do not cover the full amount due
- Using substandard materials to settle the claim
- Turning the responsibility of payment to another company, such as the contractor completing the work
- Estimating the cost to rebuild as too low
Any combination of these can be a reason to file an insurance bad faith suit. California law also allows bad faith prosecutions on the federal level in certain egregious circumstances.
Proving Commercial Insurance Bad Faith
To prove commercial insurance bad faith, the business needs to gather several pieces of evidence. Put any correspondence with the insurance company, receipts for repairs made to the building or property relating to the claim, loss of income statements, and inventory statements into a file to use when filing a claim.
The best way to file a bad faith claim is with a lawyer’s help. A lawyer with experience will know exactly how to file a claim, who to contact, and what pieces of evidence to gather. Enjoy the peace of mind and the knowledge that an insurer won’t try to manipulate you into a lesser settlement.
Don’t let an insurance bad faith ruin your business. Our San Diego law offices have the knowledge and the expertise to get what you deserve. Take the proper steps to get your settlement payment and get back on the road to success.