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Understanding Insurance Bad Faith

rejected insurance claims When disaster strikes people who have insurance, they should be able to expect their insurers to cover their losses and help them bounce back from calamity. That, after all, is the sole reason people pay into insurance programs in the first place.

Sadly, insurance companies are businesses and the vast majority of businesses have one goal in mind: making as much money as possible. This means insurers often give low ball offers on claims hopingĀ  to settle them for as little money as possible. They also reject perfectly valid claims sometimes, cheating their customers out of the service they have been paying into.

Treating your customers this way is not only bad for business; it’s also illegal. Insurance is a complicated product, since there is no physical item being sold. Instead, the entire deal is tied up in the terms of the customer’s insurance policy which can be a confusing document full of snares and highly-specific language.

When insurance companies offer low payouts for large claims, it may be an indication that your insurance company is acting in bad faith. If you suspect you’ve been a victim of insurance bad faith, an attorney can help you determine what the proper course of action to take is.