5 Common Examples of Bad Faith

Many people filing insurance claims are not always sure of what their rights are or what administrative processes are used to review and decide on their claim. When an insurance company fails to provide proper relief to the claimant, it could be because something is legitimately wrong with their claim. Other times, however, it is because the provider has acted in bad faith.

If your insurance provider has acted in bad faith, it is recommended that you speak with a proven Tampa insurance lawyer today. Below, let’s look at the five most common forms of insurance bad faith.

Denials, Delays and Lowball Offers

The most common instances of bad faith are an inexplicable lack coverage for an accident that is clearly covered in the claimant’s policy. Claim rejection is an easily spotted example of negligence on the provider’s part, but they can also use stalling tactics and partial coverage offers to avoid paying their customer what they were promised.

Altering the Policy

Over the course of maintaining your policy with a provider, your policy is likely to go through small changes. However, if the changes to your policy are significant and negatively affect your coverage just after you’ve filed a claim, your provider is likely trying to pull a bait and switch and is acting in bad faith.

Lack of Diligence

It is common for adjusters to investigate the damage that’s been done to a claimant’s property to verify the legitimacy of a claim. However, these investigations can sometimes be haphazard, inaccurate, or not even occur at all. When this happens, claimants may be able to claim bad faith.

Canceling the Coverage

Instead of properly considering a claim and paying a claimant what they are owed, some insurance providers will abruptly cancel a policy to get out of paying anything. There can be numerous excuses for the company to do this but, in most cases, the reasons are illegitimate.

Demands and Threats

Sometimes, to delay paying a claim or to find reasons to deny one, an insurance company will make unreasonable demands of the claimant. This can come in many forms: numerous doctor visits, obscure and repetitive documentation, etc. When a claimant resists following through on these demands, the insurance provider can also cite this as a reason to deny coverage.

If you believe that your insurance company has acted in bad faith, Murray + Murray is ready to hear from you. Our legal team not only has more than 150 years of combined experience but has also recovered millions of dollars in policy coverage on behalf of our clients. If you’ve been wronged by your insurance provider, our firm knows what it takes to seek the justice you deserve.