If you’ve been injured in an accident, you expect your insurance company to compensate you for covered losses. After all, you pay a lot for insurance to ensure you’re protected if you’re ever injured in an accident.
Unfortunately, insurance companies are notoriously difficult to work with after accidents. Sometimes, they’re just slow and challenging to work with. Other times, they act unfairly and unreasonably. When this happens, the insurance company is acting in bad faith.
If your insurance company acts in bad faith, you can file a bad-faith claim against them. If your claim is successful, you can recover the amount of your initial damages plus additional penalties and costs. That said, proving that an insurance company acted in bad faith is difficult, especially since they have teams of lawyers and adjusters working for them.
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What Does It Mean for an Insurance Company to Act in Bad Faith?
Insurance companies act in bad faith when they deliberately violate contractual obligations to policyholders. Insurance policies establish specific terms about when and how claims must be paid.
There is a contractual obligation between the insurance company and the insured. When an insurance company intentionally violates those terms, it acts in bad faith.
Specific ways companies act in bad faith are:
- Misrepresenting material facts related to a claim
- Misrepresenting provisions of an insurance policy
- Failing to handle a claim in a reasonable time frame
- Denying a claim without providing any explanation or justification
- Trying to force policyholders to settle claims for unreasonable amounts
- Issuing threats to get policyholders to settle claims
- Instructing policyholders not to hire an attorney
- Failing to notify the policyholder of the information required to process the claim
- Asking for duplicative or unnecessary paperwork
This is not a comprehensive list of ways that insurance companies can act in bad faith. There are many more examples and ways they can breach their contractual obligation to policyholders.
Insurance companies must act in good faith and comply with their obligations under the terms of your policy. If your insurance company fails to meet this standard, they could be subject to penalties and fees on top of the claim payment.
Common Tactics by Insurance Adjusters That Raise Concerns of Bad Faith
Some common tactics by insurance adjusters involve questionable behavior. These practices raise concerns but don’t always rise to the level of bad faith. Examples of these questionable behaviors include:
- Requiring a recorded statement
- Pressuring you to make an early statement
- Discouraging you from hiring a lawyer
- Asking you to sign a blanket medical release to gather information unrelated to your claim
- Using deception to access social media accounts
If your insurance adjuster is engaging in questionable practices, it’s best to consult with an attorney. A lawyer can review your case and determine whether the insurance company is acting in bad faith.
When dealing with an insurance claim, it’s important to remember that the adjuster does not represent your interests. Insurance companies want to avoid paying personal injury claims and have a team of adjusters and lawyers working to ensure they pay as little as possible. You need a good personal injury lawyer fighting for you.
What to Do if Your Insurance Company Acts in Bad Faith
If you’re concerned that your insurance company is acting in bad faith, you should be proactive about protecting your rights.
Here’s a checklist of how to proceed if you think your insurance company is acting in bad faith:
- Review your insurance policy. It’s helpful to be familiar with the terms of your policy from the outset. The insurance company must comply with the terms of your policy, so the more familiarity you have with it the better.
- Document the claims process. Keep records of all calls and meetings. Gather documentation showing all communication between you and your insurance company.
- If your claim is denied, get the denial in writing. You should also request a review and keep documentation of that request and any response you get.
- If your review is denied, make a final demand in writing.
- Contact a bad faith insurance attorney to initiate a bad-faith claim against the insurance company. The sooner you do this the better so your lawyer can deal with your insurance company and gather necessary documentation and evidence.
Contact a Baltimore Personal Injury Lawyer
Insurance companies are obligated to comply with the terms of your policy. If your insurance company acts in bad faith, you can bring a lawsuit against them to force them to pay the amount of your claim plus penalties. Call a Baltimore personal injury lawyer at WGK Personal Injury Lawyers at (410) 837-2144 or contact us online today.