4 Proven Strategies to Challenge Bad Faith Insurance Denials
When you file a legitimate insurance claim after paying your premiums, you expect your insurance company to follow the terms of the policy and properly pay out on that claim. Yet sometimes, insurers delay your claim, offer less than you deserve, or deny it altogether. This type of response is not only frustrating, but may actually qualify as bad faith. Here are five strategic ways to challenge a bad faith denial.
Understanding What Counts as Bad Faith
When determining if a denial can be challenged, the first step is to understand if the insurer’s decision was valid. Insurers are required to handle claims in a timely manner, communicate honestly, and pay valid claims according to the policy terms. Bad faith may occur when an insurer:
- Denies or delays payment without a good reason
- Misrepresents policy coverage
- Fails to properly investigate a claim
- Pressures you to accept a low settlement
Recognizing these signs early helps you build a stronger case, which is something we can confirm through a careful review of your policy and investigation of the denial.
Gather As Much Documentation as Possible
A strong bad faith case depends on solid evidence. You’ll want to keep detailed records of every communication, claim submission, photograph, estimate and email between you and your insurer. The clearer your paper trail, the harder it is for the insurer to justify its actions.
Demand a Written Explanation
Insurance companies are legally required to provide an explanation as to why your claim was denied. If you receive a vague letter simply stating that your claim was not covered, you have the right to demand a detailed breakdown and request a full written explanation citing the specific policy wording or exclusions the insurer relied upon when making their decision. Their justification of the decision may reveal weaknesses in their reasoning and potentially be used to identify contradictions or misinterpretations that support a bad faith allegation.
Get the Most Reliable Legal Support for a Bad Faith Case
One of the best strategies in defending a bad faith denial is to not take on the task alone. Illinois sets a fairly high standard for proving these types of claims, and insurance companies have large legal teams available to help in their defense. At Churchill, Quinn, Hamilton and Van Donselaar, Ltd., we can determine which approach would be the most effective based on your specific circumstances. This could include a well-supported demand letter or a complaint to the Department of Insurance. Alternatively, it may require escalation to a lawsuit if the insurer stands firm in their decision.
Working with one of our experienced insurance litigation attorneys helps level the playing field when dealing with large corporations. We understand the tactics insurers use to stall or undervalue claims and recognize evidence needed to prove bad faith. More importantly, we can handle the high-pressure negotiations and complex filings on your behalf in order to hold the insurance company accountable and get your claim paid. Reach out to schedule a consultation by calling 847-223-1500.