The Top 6 Bad Faith Practices of Commercial Insurers

Just like other businesses, insurance companies are interested in making money. Because of this, they will sometimes act in bad faith in order to avoid paying out the compensation their policyholders deserve. One of the best ways to avoid falling victim to these bad faith practices is to be aware of them beforehand.

Today, your McAllen bad faith insurance lawyers at Millin & Millin will list the 6 most common types of bad faith practices done by commercial insurance companies. These acts should be taken very seriously as they can result in massive financial losses. 

If you have experienced any of these issues, you should contact a bad faith insurance attorney immediately. 

The Top Bad Faith Practices Insurers Use

1. Deceptive Practices

There are many ways that insurers can use deception to deny your claim or minimize your rightful compensation. Insurance policies can be incredibly complex, making it easier for these companies to deceive policyholders regarding their contents.

An insurer may use deceptive practices by intentionally withholding information about filing deadlines or available coverage. They may also lie about what exclusions are included in your policy in an attempt to deny valid claims.

2. Unreasonable Delays

Oftentimes, insurance claims are made by businesses that need emergency funds to cover some sort of unexpected damage or financial crisis. Because of this, delays in compensation can be a serious issue.  

However, insurance companies usually have a specific reason for delaying their process of approving or rejecting your claim. Delays can give insurance companies greater leverage in settlement negotiations as claimants’ needs become more pressing; delays may also discourage claimants from pursuing their claim at all.

In Texas, insurance companies have 15 days to respond to your claim, either by accepting, denying, or requesting more time with an explanation for that request. If you haven’t received a response within 15 days of filing, you may wish to contact a bad faith insurance attorney about filing a suit against your insurer.

3. Failure to Fully Investigate Claims

In order to deny claims, insurance companies may simply decide not to investigate them fully. It’s possible that the company may have bad faith guidelines in place in order to ensure more claims are denied. Insurance companies are required by law to make a fair effort to evaluate your claim.

4. Refusal to Pay Out for Valid Claims

An insurance policy is a binding contract for both parties. With that, if you make a valid claim against that policy, the insurance company must accept that claim. Any denial you receive should have a factual and evidence-based explanation.

5. Making Insufficient Settlements

Insurers aren’t allowed to simply decide to pay you less than you need in order to save themselves money. Regardless, many insurers may attempt to do just that. 

If your insurance company is lowballing their settlement offers, they may be acting in bad faith to protect their bottom line.

6. Sending Threatening Messages

Sending threatening messages is absolutely never allowed for insurers. This may include threatening to share private information, threatening to harm you or your business physically, or any other messages that threaten any sort of harm for any reason. 

If you receive any messages of this type, contact a bad faith insurance attorney. The law takes these actions very seriously.

Don’t let insurance companies take advantage of you. Seek the guidance of Millin & Millin bad faith insurance attorneys.

If you feel your insurance company is operating in bad faith, contact the bad faith insurance attorneys at Millin & Millin, PLLC, to learn about your legal options.

 

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