Attorney
When you suffer a personal injury, the last thing you need is an insurance company giving you the runaround. Unfortunately, many policyholders and claimants find themselves up against unexpected delays, unexplained denials, or settlement offers that are far too low to cover their losses. In some cases, insurance companies fail to hold up their end of the bargain altogether—leaving injured individuals confused, stressed, and financially vulnerable.
These kinds of tactics aren’t just frustrating—they may be illegal. When an insurance provider neglects its legal duty to act honestly and fairly, it’s known as bad faith insurance.
What is Bad Faith Insurance?
Bad faith insurance happens when an insurance company fails to fulfill its legal obligation to treat policyholders and claimants fairly. Under the law, insurers have a duty to investigate claims promptly, provide clear communication, and offer settlements that align with the terms of the policy.
Policyholders have a right to expect their insurance company to:
- Conduct timely and thorough investigations
- Provide valid reasons for claim denials or delays
- Communicate clearly and consistently throughout the claims process
- Offer fair and reasonable compensation based on the policy terms
When these expectations are not met, it may constitute bad faith. Examples include:
- Denying a valid claim without providing a clear reason
- Unreasonable delays in processing or paying out benefits
- Offering settlements that fall well below what the claim is worth
- Failing to investigate a claim properly
- Misrepresenting policy language to avoid paying a claim
- Withholding important information from the claimant
These practices can leave injured individuals stuck covering their own medical expenses, missing out on lost wages, or feeling forced to accept inadequate settlements just to move forward.
Why Bad Faith Occurs in Personal Injury Claims
In personal injury cases, the stakes can be high. Insurance companies are businesses first and foremost, and their primary goal is to limit payouts in order to maximize profit. This can lead to tactics aimed at minimizing the value of a claim—even if the policyholder is entitled to much more.
Bad faith in these situations may stem from:
- Cost-cutting measures to reduce overall claim expenses
- Assumptions that claimants won’t fight back or hire an attorney
- Pressure from within the company to close claims quickly and cheaply
- A strategy of delay to wear down claimants and pressure them into settling
When these tactics are used unjustly, injured claimants can suffer financially, emotionally, and physically—all while battling an insurance provider that should be on their side.
How to Prove Bad Faith Insurance
If you believe your insurance company is acting in bad faith, it’s crucial to begin gathering evidence and documenting your interactions. Here are some key steps to help support your case:
- Keep detailed records of all communications, including emails, phone calls, and written letters
- Request written explanations for any denial or delay in benefits
- Save copies of your insurance policy and all claim documentation
- Track timelines of when you submitted your claim versus when you received a response
- Consult a personal injury attorney who can help identify bad faith practices and guide you through the legal process
You don’t have to accept an unfair denial or settlement. With the right evidence and legal support, you may be able to hold the insurance company accountable and recover the compensation you deserve.
Contact Us for Help with Bad Faith Insurance Claims
If you’ve been injured and feel your insurance provider has acted unfairly or in bad faith, don’t wait. The personal injury attorneys at Koonz McKenney Johnson & DePaolis LLP are here to help. We offer free consultations to review your situation and help determine the best course of action. You’ve already been through enough—let us fight to make sure your insurance company doesn’t make things worse.
Contact us today to schedule your free consultation.