Posted by on May 22, 2013 in Insurance | 2 comments

Smith Kendall PLLCCustomers pay insurance companies not just for the sense of security that carrying insurance provides, but also in the knowledge that in the event of a serious accident or other form of damage, they will be able to recover the costs that are incurred, preventing financial disaster. As a result, insurance customers have a right to expect that they will be treated fairly and with respect if it ever becomes necessary to file an insurance claim.

Unfortunately, the reality is that many insurance companies do not always operate in this way towards their clients. Depending on the nature of the specific form of insurance involved, many insurance customers eventually find that, when an accident or injury is involved, they may be denied the full amount of compensation they are owed, or their insurance company may engage in various other tactics that in some way disadvantage them during this difficult time.

Known as insurance bad faith, this practice is legally prohibited in the United States’ legal system. While instances of insurance bad faith in other countries may also be subject to legal action, those cases are limited to recovering whatever losses that the injured party may have incurred as a result of the insurance company’s actions. However, under U.S. law, instances of insurance bad faith may be subject to tort actions, rather than simply contract dispute judgments. This means that instances of insurance bad faith may actually allow the victims to recover more than the actual losses which they suffered, with the assistance of a skilled Dallas insurance lawyer.

However, it’s far better to protect against insurance bad faith than to litigate the issue after the fact. Many families who are struggling to recover from a serious injury, damage to property, or any other issue which may require filing an insurance claim do not have the time or resources necessary to pursue a costly court case against unscrupulous insurers, which can often go on over years or even decades.

The best way to protect against insurance bad faith before the fact is simply through scrupulous claims management. Insurers have an economic interest in denying claims for any possible reason, so when an individual files a claim for benefits from their insurer, it is essential that they make sure that every possible detail of that claim is correct to the best of their knowledge. Moreover, it is important to do as much research as possible into the correct management of a claim, in order to know what information will be necessary and how best to document it. For these issues, it may be helpful to consult with a claims management specialist, who can better inform you about what things your claim may require.

It’s also important to file your claim in a timely manner. Failure to file as soon as reasonably possible after an accident or injury occurs can cause insurance companies to view your claim with greater scrutiny and, potentially, may result in a higher likelihood of mismanagement on their part.

2 Comments

  1. 7-2-2013

    This is an incredibly accurate and informative article. Insurance companies often try to get the best of clients, which is why all of us bad faith insurance law firms seek to help. Seek help.

  2. 11-24-2014

    I really love this style of blog, thanks for writing.

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