3 Signs Your Business May Have a Bad Faith Insurance Claim


insurance

Property insurance, general liability insurance, and vehicle insurance are all types of insurance for businesses, and there are a lot more. Having the right insurance coverage for your business can mean the difference between weathering a storm and being crippled by one. But what if your insurance company doesn’t live up to its end of the bargain? When they leave you out to dry after you’ve done all the right things needed to be entitled to a payout this is called bad faith insurance and you may be entitled to compensation.  

Here are 3 signs to look out for.

Your Insurance Company is Low-Balling Your Settlement Offer

After your claim has been approved, you should receive a settlement offer from your insurance company. This offer should adequately cover costs.

If your insurance company is offering you far less than what you need to fully recover, this is another sign of bad faith. Insurance companies often do this in hopes that policyholders will take the low offer just to save themselves the hassle of negotiating or going to court.

Don’t fall for it! If you believe your insurance company is acting in bad faith, reach out to an experienced insurance claim lawyer who can help you fight for the full settlement you deserve.

Your Claim is Unreasonably Denied

If your claim is denied outright, this is a sign that your insurance company may be acting in bad faith. Of course, there are some valid reasons why a claim may be denied such as if you don’t have the right coverage or if you failed to meet the requirements of your policy.

But if your claim is denied without a clear explanation, or if the explanation doesn’t make sense given the facts of your case, you may have a case for bad faith. 

For example, if your business is damaged in a storm and you have clear weather damage coverage in your policy, but your claim is denied because the insurance company says the damage was caused by flooding, this could be considered bad faith and you should contact an attorney about the possibility of the filing a claim.

You’re Being Stonewalled

When you make a claim, your insurance company should keep you updated on the status of your claim and let you know what they need from you to process it. If you’re being completely ignored or given the runaround, this is a sign that something isn’t right.

For example, if you make a claim and the insurance company asks you for additional information but never follows up to see if you’ve provided it, this is a form of stonewalling. Or, if you’re constantly being transferred to different people who can’t give you any updates on your claim, this is also a bad sign.

If you’re being stonewalled by your insurance company, reach out to an attorney who can help you understand your legal options.

These are just a few of the signs that your business may have a bad faith insurance claim. If you’ve suffered damages and your insurance company isn’t living up to their end of the bargain, don’t hesitate to reach out to an attorney for help.