In the often-complex world of insurance, trust between you and your insurer is paramount. Insurance companies have a legal obligation to act in good faith and deal fairly with policyholders. However, there are instances when they fall short of this duty, causing undue stress and financial consequences. Recognizing the warning signs of an insurance company acting in bad faith can empower you to take necessary action to protect your interests.

Unnecessary Delays in Processing Your Claim

One of the primary indicators that an insurance company is acting in bad faith is an unnecessary delay in processing your claim. When your insurer consistently fails to respond to your inquiries or drags out the claims process without valid reasons, it may be a tactic to avoid fulfilling its obligations. This delay can be particularly damaging in critical situations, such as when you're relying on workers' compensation insurance to cover lost wages and medical expenses. While about nine out of 10 people in the nation's workforce are protected by workers' compensation insurance, according to the Insurance Information Institute, these delays can leave you struggling to make ends meet. Consulting a personal injury lawyer can help you navigate these challenges and hold your insurer accountable.

Denial of a Claim Without a Reasonable Explanation

Another red flag is the denial of a valid claim without a reasonable explanation. If an insurance company denies your claim without providing a detailed reason or misinterprets your policy provisions in its favor, it may be attempting to shirk its responsibility. In some cases, insurers may even claim that certain coverage does not apply when it actually does, leaving you vulnerable at a time when you most need support. Understanding your policy details and requesting a precise denial reason can help you counteract these unfair practices. If you believe your claim has been wrongfully denied, consulting a personal injury lawyer may be essential in challenging the insurer’s decision.

Offering a Settlement Lower Than Your Claim’s Worth

Lowball settlement offers are another tactic used by insurance companies acting in bad faith. When insurers offer settlements that are significantly lower than what your claim is actually worth, it is often a sign they are not acting in your best interest. Many policyholders, under financial pressure, might feel forced to accept these inadequate offers. By consulting with an expert or a personal injury lawyer, you can better assess your claim's worth and challenge unfair settlement offers.

In conclusion, dealing with an insurance company acting in bad faith can be a daunting experience. By recognizing the warning signs — such as unnecessary delays, unjustified claim denials, and lowball settlements—you can take informed steps to protect your rights. If you suspect foul play, seeking legal assistance may be crucial to ensuring you receive the compensation you deserve. Curtis, Porter & Adams, PLLC is here to fight for you — contact us today for expert legal guidance.