An insurance bad faith claim asserts that an insurer acted unfairly when it handled your claim. They happen when the company delays payment, ignores evidence, or denies benefits without a fair reason. Bad faith may occur in any case, but particularly in disability claims.
You expect insurers to help after an accident or injury. However, you might instead face attempts to delay or underpay your legitimate claim. When an insurance company has denied your claim unfairly, it’s time to get legal help so you can get the benefits you deserve.
Our Kansas City ERISA Long-Term Disability lawyers have more than 60 years of combined legal experience. You can expect the results you deserve from a firm you can trust. Call now to schedule your free consultation and tell us about your bad faith insurance claim.
When Does an Insurance Company Act in Bad Faith?
Insurance companies have duties under your policy and under the law. They are supposed to investigate claims fairly and make reasonable decisions based on the facts. Bad faith happens when an insurer does not deal with you honestly or fairly. Examples include:
- The adjuster stops returning your calls and cuts off communication in an attempt to delay your claim.
- The insurer may delay making a decision without providing a meaningful explanation. If weeks or months pass with little movement and no real reason, that may point to bad-faith handling.
- The insurance company repeatedly asks for the same documents in order to delay your claim and create confusion.
- The insurer may urge you to act fast or sign forms early. Sometimes, they may try to talk you out of speaking with an attorney.
Not every denied claim involves bad faith, but insurers must still evaluate claims fairly and in good faith. Some claims are denied for valid reasons. The issue is when the insurer acts unreasonably or places its own interests above its duty to treat you reasonably.
Get the compensation you deserve with trusted legal guidance.
How Do You Prove a Bad Faith Insurance Case?
The answer depends on the type of claim and the law that applies. In general, you need to show more than simple frustration or poor customer service. You usually must show that the insurer acted without a reasonable basis or failed to properly evaluate your claim.
Documents such as claim letters and correspondence with your insurer can help create a picture of why you believe you have been treated unfairly. Insurance companies may also keep detailed files, and often they defend their decisions aggressively.
That is one reason early legal guidance can be important. Even if you are not ready to hire anyone, getting advice before signing forms can protect your position. When it comes time to act, a knowledgeable attorney can help you take on powerful insurers.
What Should You Do If an Insurer Treats You Unfairly?
An insurance company might make it seem like they have control of your situation, but they are bound by the law and often ERISA regulations. When they treat you unfairly, you can take steps to push back.
Get the Medical Care You Need
If you haven’t already seen a doctor, it is important to get medical treatment right away. Your well-being matters more than the claim process, and early treatment can create records that support your case later on.
Build a Paper Trail
Save every document connected to the claim and keep letters from the insurance company. If you receive other correspondence, such as emails or text messages, preserve those too. The more complete your file is, the easier it is to understand what the insurer did and when it did it.
Create a Timeline
Each time you speak with the adjuster, write down the date and take note of the time if you can. Record who you spoke with and summarize what was said. If the company changes its position later on, your notes may help show the shift.
Get Insurer Requests in Writing
When the adjuster asks for more information, tell them to send their request in writing. This gives you a document that proves their behavior in case they dispute the interactions. It also reduces confusion regarding exactly what they expect you to provide.
Challenge Denials
If the insurer denies your claim, that isn’t necessarily the end. You can appeal a Long-Term Disability denial and most other insurance refusals. They should send you a denial letter explaining the reason. If you instead get a vague response or no reason at all, it is a major warning sign.
Talk to an Attorney
Don’t try to challenge an unscrupulous insurer on your own. A lawyer can review your denial letter and assess how the insurance company handled your claim. If you have a bad faith case, they may help you pursue your original claim as well as additional damages.
Get Help With Your Bad Faith Claim
When insurance companies ignore their legal obligations during the claims process, they may be acting in bad faith. If you believe this is happening to you, it is helpful to speak with an attorney to better understand your legal rights.
At Kevin McManus Law, we’ve helped our clients recover millions of dollars in awards and settlements. Call today for your free consultation to discuss your case.
