Bad faith is a legal term used to describe a situation where an insurance company has failed to fulfill the obligations set forth in the terms of the insurance policy. If you are able to show that the insurance company is acting in bad faith, you may be able to recover more than the amount of your initial claim. But, how do you know when an insurance company is acting in bad faith?
Examples of Bad Faith
There are several ways in which an insurance company can act in bad faith, including:
- Denying a policyholder’s claim without good reason
- Failing to provide an explanation as to why a claim has been denied
- Failing to pay a claim in a timely manner
- Requesting that the policyholder submit unnecessary documentation in order to have his claim processed
- Failing to settle claims made against a policyholder in a reasonable amount of time
- Failing to take action to defend you against a claim
Basically, if an insurance company does not live up to the terms of the agreement outlined in the insurance policy, the company is said to be acting in bad faith. Some people assume that an insurance company is acting in bad faith if the adjuster offers a low settlement or has a different opinion on the value of the claim, but that’s not true. A disagreement over the amount of compensation that you are entitled to is not an example of bad faith.
How to Handle an Insurance Company Acting in Bad Faith
Sometimes, just using the words “bad faith” with your insurance adjuster is enough to show that you are serious. But, it’s recommended that you wait to say anything until you have talked to an attorney.
If you believe an insurance company is not fulfilling the terms of your policy, get in touch with an attorney right away to discuss your case. An experienced attorney may be able to help you recover the compensation from your initial claim as well as additional compensation to account for the insurance company’s unethical behavior. The insurance company will aggressively defend its decision to deny or delay your claim, so you will need an attorney who knows how to present a strong case and prove that the company was acting in bad faith.
Do you suspect that your insurance company is acting in bad faith? If so, contact Reisch Law Firm today. Our experienced attorneys will make sure that the insurance company complies with the terms of your insurance policy. Schedule a consultation with our law firm today by calling 303-291-0555 or filling out this online form.