Insurers: The Differences Between Good & Bad Faith

When you buy an insurance policy, it is more than implied that the insurers will act in good faith if you must file a claim – it is expected! Consumers today spend a substantial amount of their income on protecting their property and livelihoods, often purchasing multiple lines of insurance. You may have a simple portfolio and only require car insurance for one or two cars, or you could be a business owner ensuring a fleet of vehicles, several different facilities for your business, along with multiple different types of liability insurance. No matter how you slice it, for most of us, insurance is not cheap, and we would all rather be putting that money somewhere else.

If an unexpected event such as a car accident or damage to your home, perhaps after a fire or a storm, has occurred, your first thought is probably to be glad you have insurance, and begin wondering what will be involved in filing a claim. Once you have done so, you probably expect to hear from the insurance company quickly, and for your claim to be processed efficiently, with a settlement received so that you can recoup your loss.

An insurance company acting in good faith will contact you quickly, and open an investigation so they can determine what type of settlement is in order. If red flags erupt, you may begin to worry about bad faith, especially if they are slow to handle the claim, delay without obvious reasons, deny you, or try to intimidate you into taking a lowball offer. Duplicitous insurance companies have countless ways to try and discredit a claim (or even you), making accusations about fraud or tearing down witnesses who could have been on the scene when damage or an accident occurred.

A bad faith insurer may delay your case by asking for excessive amounts of documentation – even to include tax returns. They may even go so far as to request interviews that are tape-recorded or ask you to participate in an examination under oath, which can be an extremely stressful process. As soon as you suspect bad faith, consult with a skilled insurance attorney from an office like the Bolender Law Firm.

If you suspect your insurance company may be denying your claim in bad faith, contact the attorneys at the Bolender Law Firm. If a dispute over a claim cannot be easily resolved through a call or written communication, our attorneys will advocate on behalf of policyholders through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!

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