Common Bad Faith Insurance Practices

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Battling the Dark SideMany Americans have had to deal with it, and some without the proper compensation. Many people just let it go, believing that there’s no good way to challenge the big company and the denied claims. They believe that they will either lose in or out of court or win with a whole pile of legal fees. These misnomers play into the insurance corporations’ hands. They know that if they are not challenged, they can continue such predatory practices and increase their bottom line. In short, there are many practices used by these companies to squeeze the little guy. Let’s review some of them.

  • Denial of claims is common and often the most visible. Legitimate claims are rejected because the company uses loopholes or legal sleight of hand to prevent their clients from receiving compensation.
  • Using attorneys to intimidate policy holders can be common. Using company attorneys to confuse or to manipulate clients that do not have legal representation is reprehensible and allows for people to make uninformed, well meaning decisions that will allow the company to reduce or refuse their claims.
  • Capturing incomplete statements. Insurance adjustors or company attorneys have been known to ask questions meant to trap policy holders when they are submitting a claim. By finding technicalities that the company can walk away from claims with, the consumer will be left empty handed when they need help the most.

Unfortunately, some companies have refined such a practice into a science. Frequent complaints and lawsuits have shown that well known companies, including Allstate, State Farm, Farmers, Liberty Mutual, Progressive, and the Hartford use such tactics. These companies are commonly ranked at the bottom of consumer satisfaction lists and are often cited as bad examples by consumer protection agencies.

When faced with such unethical behavior, it is vital to find a legal advocate that can challenge the large conglomerates. Attorneys with specialization in both consumer protection and insurance law can successfully face down these companies and receive the compensation deserved. Attorneys that work on contingency can put payment concerns at ease and those with a successful track record give you the chance to win in and out of the courtroom you need. Contact Ehline Law for more information or for a free, no-pressure consultation today.