What Are Examples of Bad Faith Insurance?

We purchase insurance to cover us when things go wrong, and this coverage can make a serious difference in how your dilemma will be resolved. There is a wide range of laws in the books that are intended to ensure that insurance companies stand behind the insurance products they sell. Insurance companies are, however, for-profit companies, and sometimes, they push the boundaries of the law to bolster their profits, and sometimes, their actions qualify as bad faith. If you have questions or concerns about the insurance company handling your claim, an experienced Philadelphia bad-faith insurance attorney is on your side.

The Insurance Company Handling Your Claim

When you make a claim with your own insurance company, that insurance company owes you specific duties and has specific responsibilities in relation to your claim. These are in exchange for the premiums that you, the policyholder, have paid. Their two primary duties and responsibilities include the following:

• The duty to remain in compliance with the policy terms
• The responsibility to fully, fairly and promptly investigate, evaluate and pay the valid claims that are covered by the policy

There are a variety of ways that insurance companies can evade these requirements, but most claims of bad faith relate to the insurance company’s failure in one of these categories of obligation.

Examples of Bad Faith Insurance Practices

At the heart of every bad faith insurance claim is an insurance company that stepped outside the industry standards, guidelines, and requirements to keep the settlement low or to not cover the claim at all. While every case of bad faith is unique to the circumstances involved, some of the most common examples of bad faith insurance practices include all the following:

• Denying a claim without first conducting a proper and thorough investigation
• Purposefully dragging out the claims process unnecessarily, such as by stalling negotiations – often to the point that the claimant simply gives up
• Failing to treat the policyholders’ interest with equal regard as it does its own interest
• Denying claims unreasonably or based upon insufficient information, speculation or biased information
• Unreasonably undervaluing claims or making lowball settlement offers
• Intentionally or recklessly misinterpreting the terms included in the policy
• Failing to disclose the benefits, coverages and time limits that apply to a claim

If any of these examples sound familiar to you, don’t delay speaking with a knowledgeable bad-faith insurance attorney.

Seek the Trusted Legal Guidance of an Experienced Philadelphia Bad Faith Insurance Attorney

If the insurance company handling your claim is acting in bad faith, it amplifies your need – not only did something happen that requires coverage, but you’re also hitting a wall when it comes to collecting the compensation to which you’re entitled. The skilled Philadelphia bad faith insurance attorneys at HGSK Injury Lawyers understand just how difficult your position is and are committed to doing everything within their legal power to affect a settlement or court award that not only compensates you for your covered losses but also addresses the bad faith practices the insurance company made you endure. Your claim is important to your future, so please don’t wait to learn more by contacting us online or calling 267-350-6600 and scheduling your free consultation today.