Bad faith insurance tactics involving denying or delaying valid insurance benefits from life insurance policies and health care insurance policies is commonplace in the insurance industry. Yet, bad faith insurance tactics are not limited to those areas. Business insurance bad faith practices are also common – especially in the down turned economy. However, according to our legal expert, policyholders are fighting back.
Attorney Bob Scott On Business Insurance Bad Faith Practices
Bob Scott, a California attorney and partner in the Advocate Law Group, says that the majority of states in the U.S. have laws which allow policyholders – which can include businesses, corporations, etc. – to go after insurance companies that have acted in bad faith. He says that bad faith business insurance practices are far too common, but that policyholders are fighting back. Scott was actually on his way to meet with a client who was dealing with bad faith business insurance claim when we spoke with him:
I'm on my way to a restaurant right now which suffered a water loss. The owner's insurance company adjusted the claim horribly and now I'm getting involved because the insurer is refusing to pay them and is not treating them fairly.Any policyholder who experiences a fire loss, a water loss, vandalism, theft or other loss and has problems with their insurance company adjusting their claim fairly should absolutely seek out a bad faith insurance lawyer for help. Insurance companies cannot put their interests above the interests of their insurers. It's just a big no-no.
An Insurance Policy Is A Contract
Many people forget that an insurance policy is a contract and if the insurer doesn't honor their part of the contract, the policyholder or beneficiary can sue. According to Scott, it doesn’t matter if you’re the beneficiary under a life insurance policy, the disabled person with an individual disability policy or a business that has experienced a loss – you can go after an insurance company who has acted in bad faith in any one of those situations. He says:
The bottom line is that it's simply wrong for insurance companies to collect a premium and then wiggle out of paying. Unfortunately, it's a frequent practice by the insurance industry and too many people whose claims are denied simply never find the right lawyers to help them.
If you've been the victim of business insurance bad faith, contact a bad faith insurance lawyer who knows the tactics that some insurers use to delay and deny valid business insurance claims. Find out how you can tip the scales in your favor when it comes to fighting bad faith insurance practices.