What are some examples of bad faith insurance claims?
When you purchased your insurance premium, you no doubt believed that your insurance provider would cover your damages in the event of a crisis. After all, the purpose of insurance is to protect your finances in the event that some costly event—a natural disaster, an injury, a lawsuit—should occur. But now, one of those unfortunate incidents has affected you, and your insurance provider has denied your claim.
You may feel bewildered. After all, you are certain that your claim is valid—why would your insurance provider deny it?
Sadly, too many claimants have experienced this scenario. When an insurance provider wrongfully denies, delays or mishandles a claim that is otherwise valid, it is said to be acting in bad faith. To help you know whether your insurance provider has wrongfully denied your claim, take a look at the following examples of bad faith insurance claims.
1. An unreasonable delay
Insurance companies are not exactly known for being swift. Still, they have a responsibility to their clients to investigate a claim fairly promptly. If your insurance provider has taken an unreasonably long time to process or pay your claim, it may be an example of bad faith.
2. Inadequate investigation
When you file an insurance claim, your provider has a duty to conduct an adequate investigation. There are some instances in which an insurance company may act in bad faith when processing a claim, such as closing a file early, not thoroughly investigating the details of a claim or even over-investigating to the point of intrusion.
If someone files suit against you, you might expect your insurance company to provide a defense on your behalf. Sometimes, though, insurers will neglect to provide an appropriate defense. Some companies will neglect to provide a defense at all. If an insurance company is neglectful in hiring adequate counsel for its clients, it may be acting in bad faith.
Options against bad faith insurance claims
Perhaps you recognize your own scenario in one of these three examples. If you feel that your insurance provider has acted in bad faith, you still have legal options. An insurance attorney may help you receive compensation for your initial damages as well as the insurance company’s acts of bad faith against you.