September 17, 2024 | Insurance Disputes

Accidents and unfortunate incidents can occur at any time. When they do, they can drain us financially. Insurance policies are designed to provide financial protection and peace of mind when faced by life’s unexpected turns. However, insurance companies are just like any other business. They are out to make a profit. They experience losses when they pay out insurance claims. It isn’t uncommon for insurance companies not to honor their commitment and find ways to avoid paying legitimate insurance claims.

When insurance companies act in bad faith, they can leave policyholders feeling frustrated, helpless and financially burdened. Fortunately, with the help of a bad faith insurance claims attorney, you can fight for the financial recovery you need.

What Constitutes Bad Faith In Insurance?

Bad faith in the insurance industry refers to unfair practices or tactics that insurance providers may employ to avoid fulfilling their obligations as outlined in the insurance policy. Bad faith takes various forms including:

• Unreasonable denial of claims

Insurance companies assess all claims they are presented with to determine if they are legitimate. When a legitimate claim is denied without a valid reason, the insurance company may be considered to be acting in bad faith. An insurance company may deny a valid claim by ignoring evidence provided, citing nonexistent policy exclusions or using superficial or false reasons to deny the claim.

• Delayed payments

Accident victims are often under tremendous financial strain following the unexpected events. Victims and policyholders rely on insurance companies to make timely payouts to cover significant losses and expenses. However, insurance companies acting in bad faith may deliberately slow down the claims process without a valid reason, continually request additional documents or information with intention to delay the claims process rather than resolve the claim or fail to respond promptly to inquiries on the status of the claim.

• Inadequate investigation

Insurance companies carry out investigations to substantiate the claims. An insurance company may be acting in bad faith when it conducts a superficial investigation and doesn’t examine the details of the claim. The insurance company may also be acting in bad faith when it shows a clear bias, aiming to find reasons to deny or underplay the claim rather than objectively evaluating the evidence. Refusing to interview witnesses or obtain statements that may support the claim is also considered acting in bad faith.

• Misrepresentation of policy terms

Insurance policies can be complex. Insurance providers include a lot of legal jargon in these policies. However, they are required to explain their policies to the policyholders. A company may be acting in bad faith when they provide misleading or incorrect information about what is covered under the policy, highlight certain terms that benefit the insurer while downplaying or omitting terms that support the claim or use overly technical or confusing language with the intention to mislead about the coverage.

• Lowball settlements

Insurance companies will do what they can to reduce the amount they have to pay as settlement. They may offer settlements that are significantly lower than the actual value of the claims. This is a common bad faith practice. It may include deliberately undervaluing the damage or losses incurred, pressuring the claimant to accept a low settlement quickly under the guise that it is the best offer they will receive or disregarding repair estimates or appraisals provided by the claimant that accurately reflect the cost of the damages.

• Failure to provide a reason

Transparency is key to a faire claims process. Insurance providers may be acting in bad faith when they deny a claim and do not provide a reason or explanation for the denial, offer vague reasons for the denial or refuse to communicate reasons for the denial.

How a Bad Faith Insurance Claims Attorney Can Help

If you suspect that the insurance company is acting in bad faith, consulting with a knowledgeable attorney can be critical in helping to ensure justice is served. The experienced and knowledgeable attorneys at High and Younes, LLC can help by:

• Providing legal expertise and guidance

Navigating the complexities of insurance law can be overwhelming. Our experienced attorneys have a deep understanding of Nebraska’s insurance laws and can provide expert guidance on your rights and options. We will help you understand whether the insurer’s actions constitute bad faith and advise you on the best course of action.

• Carrying out thorough investigations

Our team will conduct a comprehensive investigation into your claim and the insurer’s handling of it. We will uncover any misconduct or unfair practices by the insurer.

• Negotiation with the insurer

Insurance companies often have teams of lawyers and adjusters whose primary goal is to minimize payouts. Our attorneys will level the playing field by negotiating with the insurer on your behalf. We will work to secure a fair settlement that accurately reflects the value of your claim.

If you suspect that the insurance company is acting in bad faith, contact High and Younes, LLC and schedule free consultation with an experienced attorney from our law firm.

Bad Faith Insurance Claims Attorney