Your company has a comprehensive insurance policy that is supposed to offer a level of financial protection. But when you go to use that policy, the company drags its feet and doesn’t pay out the money that you believe your business needs and deserves.
In a situation like this, it’s important to remember that the insurance company could act in bad faith. This can lead to litigation and other legal tactics, so it’s important to identify when it happens. Below are a few examples.
Not investigating the claims completely
One issue that can happen is if the insurance company just fails to carry out a proper investigation. They deny your claim, but the adjuster doesn’t even have all the information that they need. It could be that the company is intentionally trying to rush through the process and gather as little evidence as possible just so they can deny your claim.
Creating unreasonable delays
Another example is when the insurance company delays the process for unnecessary reasons. They don’t have to pay out the day after you make the claim, but if they refuse to return your phone calls or respond to email messages, and there are long delays where you don’t hear from the insurance company for months, they could be hoping that you will just drop the claim.
A lowball offer
Finally, insurance companies will sometimes provide a lowball offer, just hoping that you will accept anything that’s been offered. Under the terms of the policy, your business deserves a much larger payout. The insurance company is often acting in bad faith if it intentionally tries to get you to accept less than you are due.
This type of litigation can certainly be complex, so be sure that you understand what legal steps to take at this time. It can help to work with an experienced firm.