Insurance Companies Don’t Always Act in Good Faith
Facing a claim denial, reduced payment, or delayed payment? Our firm can help. Policyholders expect that their insurance company will be there for them after an injury or disaster. After all, it’s part of the contract they agreed to in the first place. Although a person
could have taken all of the right steps, their insurance company may prove extremely reluctant to hold up their end of the contract.
When an insurance company fails to uphold its obligations to the first party policyholder, they’re in breach of contract. Unfortunately, it’s not uncommon for a person or business to find themselves at odds with their insurance company.
When a disagreement arises over whether the third party insurance company complies with the contract, the first party has a legal right to file a first party insurance dispute. With the help of an experienced first party insurance claim lawyer, such as a business interruption lawyer, the claimant can seek the coverage they’re owed.
What unlawful insurance practices do insurance companies engage in?
It’s important to note that the exact definition of bad faith insurance varies by state. Under Florida Statute 624.155, any person can file a civil action against an insurer when the first party is damaged in the following ways:
- When an insurer does not attempt to settle claims in good faith when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests;
- When an insurance company makes claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made; or
- Except for cases of liability coverage, the insurer fails to promptly settle claims, when the obligation to settle a claim has become reasonably clear.
If your claim has been denied or you are engaged in a first party dispute with your insurance company, or you believe that your insurance company is acting in bad faith, call our firm.