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When insurance companies are accused of bad faith

On Behalf of | Nov 13, 2020 | Bad Faith Insurance Defense

For decades, you have worked for an insurance company known for its professionalism by guiding clients, helping them understand their insurance policies as well as the coverage within those policies. But, one day, you are blindsided by a client’s claims that you acted in bad faith. Whether their claim was denied, or the client contends you misled policyholders or forwarded a lowball offer, you find yourself in a coverage dispute.

An allegation of bad faith is harmful to your business and your insurance company even when the client’s complaint is without merit. Such an accusation may surface in any insurance line such as property – homeowner and motor vehicle; professional liability; life, health and disability; and workers’ compensation. You need strategies that will involve negotiation and mediation. However, brace yourself for potential litigation.

Mediation, exposing untruths

In these situations, you will need an experienced attorney who can formulate strategies to help your insurance company avoid bad faith claims. However, if necessary, an attorney can provide guidance all the way through litigation.

Here is how an attorney can help:

  • Working with you from the beginning of the claims process in order to minimize any chances regarding claims of bad faith.
  • Providing insight into mediation and settlement negotiation, a preferred alternative to litigation.
  • Focusing on a legal strategy that allows you to stay steps ahead of the claimants and their attorneys. The latter often rely on seemingly endless and unnecessary tactics related to discovery requests.
  • Uncovering the facts of the case while exposing untruths. This is necessary in order to overcome exaggerations and unfounded reports in the complaints made by the plaintiff.

Bad faith insurance claims are not uncommon. Clients want their settlements in a hurry. And if they think you have unfairly denied their claim or are procrastinating in processing it, be prepared. A good offense remains a solid defense.