Dealing with insurance companies after an accident can be just as stressful as the injury itself. When an insurance company unfairly denies or reduces your claim, this is referred to as insurance bad faith. However, there may be circumstances in which a denial is justified based on your policy.
Due to the highly technical language of insurance policies and the fact that unscrupulous adjusters may purposely misinterpret it to avoid paying your...
Before speaking to an insurance company after an accident it’s a good idea to understand a little bit about how insurance companies make their money. Insurance companies are paid monthly premiums by their policyholders to provide insurance in case of an accident. They retain this money as profit by reducing or denying as many claims as possible, even valid ones on occasion. When this occurs, it is referred to as insurance bad faith and could...
Insurance bad faith refers to when an insurance company refuses or delays payment on a valid claim from a policyholder. This could include intentionally misinterpreting the policy rules to avoid having to pay a claim or arbitrarily demanding proof from the policyholder that is not necessary to the situation. Insurance bad faith can result in extreme monetary loss for those who don’t take action against the insurance company. Insurance policies...