As a business owner, you likely have significant insurance related to your company. At the very least, if you have real estate, you are going to have property insurance that should help if there is ever damage to that property. You need an insurance provider that will pay out quickly so that you can make the repairs and get your business back on track again, as every day that this goes on potentially cuts into your own earnings and profitability.
One thing that can extend the case, potentially causing your business significant harm, is if your insurance provider is acting in bad faith. Here are three ways that could happen.
Unreasonable settlement offers
First and foremost, although you and the insurance adjuster may not agree on the exact amount of money that is owed, they do need to make a reasonable settlement offer. If you need to repair $2 million worth of damage and they only offer you $100,000, for example, they are not acting in good faith during the negotiations.
Denying a legitimate claim
Another problem is if the insurance company simply denies your claim, even though it is legitimate and they have no reason to do so. The insurance company may simply be trying to avoid a payout and protect its own bottom line. But you signed a contract with them, and they are contractually obligated to pay you the money that you deserve under the terms of your policy.
Unreasonable delays
Finally, some insurance companies will simply delay the process. Maybe they do not return your calls or ignore other forms of communication. If they are doing this on purpose to try to influence the outcome or get you to drop the case, it may be an example of acting in bad faith. In all these situations, you need to know exactly what legal options you have.