When dealing with insurance claims, most policyholders expect a fair and swift process. Unfortunately, this isn’t always the case. Insurance companies, driven by motives to protect their profits, sometimes engage in practices that can be categorized as bad faith. These tactics can delay, diminish, or deny rightful claims, placing undue stress on claimants. Understanding these tactics is vital, and attorneys like our friends at Cohen & Cohen, can attest to the numerous ways insurers try to avoid fulfilling their obligations.
Unreasonable Delays
One of the most frustrating tactics employed by insurance companies involves delaying the claims process. While there are legitimate reasons for delays, such as the need for detailed investigations, sometimes these delays are used strategically to wear down the claimant. This can involve repeatedly asking for unnecessary documentation or failing to respond to communications in a timely manner. The goal is often to push the policyholder to a point of desperation, where they might accept a lower settlement than they are entitled to.
Denying Claims Without a Valid Reason
Another direct and disheartening tactic is the outright denial of a claim without a legitimate reason. Sometimes, insurers reject claims based on obscure or misinterpreted details in the policy. This can force policyholders into a position where they must fight to prove the validity of their claim, often requiring legal representation to challenge the insurer’s decision.
Low Settlement Offers
Insurers are known to make settlement offers that are unreasonably low, not aligning with the damages or losses incurred. This tactic preys on the policyholder’s lack of knowledge or their immediate need for financial assistance. The initial offer might be presented in a manner that makes it seem like a final offer, hoping the claimant will accept it without question.
Shifting Blame or Misrepresenting Facts
Insurance companies may also attempt to shift blame onto the policyholder or misrepresent facts surrounding the claim. By casting doubt on the policyholder’s account of events or the severity of damages, insurers can justify lower payouts. This misrepresentation can be particularly challenging to counteract without a detailed and well-documented account of the incident and subsequent losses.
Building a Strong Case Against Bad Faith Tactics
Facing these tactics alone can be overwhelming for many policyholders. This is where the value of an experienced attorney comes into play. A seasoned lawyer will recognize these bad faith tactics immediately and can provide the necessary legal support to challenge the insurer’s actions. They understand the legal framework that governs insurance policies and have the skills to negotiate effectively on behalf of their clients.
To combat these tactics, it’s important for policyholders to be thorough in documenting their claims and communications with the insurer. Keeping a detailed record of all interactions, maintaining copies of all claim submissions, and documenting any correspondence can provide vital support in a bad faith claim.
Additionally, understanding your policy in depth is essential. Knowing exactly what your insurance covers, the limitations and exclusions, and the procedures for filing a claim can provide a solid foundation when disputes arise.
The road to a fair claim settlement is not always straightforward, especially when facing bad faith tactics from insurance companies. However, with the right legal guidance, policyholders can assert their rights and receive the compensation they deserve. Whether you are just beginning to file an insurance claim or are in the midst of a dispute, consider reaching out to a qualified attorney who can help protect your interests and ensure a just outcome.
