HOW TO FIGHT THE BIG BAD FAITH BULLIES
Insurance claim denied because of insurance company bad faith? What can you do? Well, you can negotiate a settlement of some sort with the insurance company, you can sue the insurer or you can simply do nothing. Typically, most people choose the latter and give up because dealing with big insurance companies can be time consuming and frustrating. And, quite frankly, most people don’t even know where to start.
It’s really sad that this happens at all. People pay good money to insurance companies and whether it’s a car crash or a serious illness, policyholders rely on the fact that help will be there when they need it. It’s protection against a rainy day, its peace of mind, and its financial security.
In a perfect world, insurance companies would always do what’s right in the interest of their insured customers. Sadly, this is not the case. Insurance companies all too often take advantage of the unsuspecting, premium paying policyholder. They unreasonably deny claims. When this type of activity occurs, it is called “bad faith.”
So why do insurance companies act in bad faith in the first place? Some might say, “it’s just business.” Insurance companies know most people won’t do anything about their bad faith practices, so they take advantage of the odds and end up saving a lot of money simply because people don’t go after what is rightfully theirs.
Hypothetically, let’s look at an example. Let’s say an insurance company denies 100 claims in a year. Ninety-five of those claims go uncontested. Five people decide to appeal the insurance claim denied in bad faith. The insurance company reverses four out of the five claims and simply pays what is owed. The fifth goes all the way to court. This insured wins the case and is awarded millions in actual losses and punitive damages. The insurance company still comes out ahead because of the 95 people it did not pay.
However, when an insurance claim attorney is hired, insurance companies seem to take things more seriously in order to minimize their losses. Especially if they know they have acted in bad faith. They want to avoid lawsuits and prevent being held up to public scrutiny. The insurance claim attorney can make things easier for the policyholder who is already dealing with a loss or injury or illness and doesn’t need to have to deal with the insurance company. Many policyholders with serious disabilities or illnesses simply can’t defend themselves and the insurance companies know this.
So if you find yourself in this unfortunate situation, your best bet is to find a well-trained attorney before proceeding into the insurance company claims appeal abyss. Hiring a top insurance attorney to take on big insurance is a smart way to evaluate what you have and let them expertly guide you through the complicated process.
Tags: California Insurance Lawyer, Erisa Attorney
California Insurance Lawyer Erisa Attorney
