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Reasons to Hire an Insurance Lawyer

15 February 2020

When to Consider an Insurance Lawyer

People purchase insurance to ensure financial security in the event that disaster strikes. Trust is put into these companies that they will follow through and provide protection in emergency situations. Unfortunately, insurance companies do not always act in good faith, which can cause serious issues for the insured. Learn about different bad faith insurance practices and the importance of hiring a lawyer with Davis Law Group. 

Claim is Denied Without Reasonable Basis

If your insurance provider denies your claim without reasonable basis, this may be considered bad faith. Based on a legal contract between the insurance company and the insured, claims that are outlined as part of the coverage within a policy may not be denied without valid reason. In a situation like this, the provider is not acting in the policyholder’s best interest, therefore it is important to contact an insurance lawyer.

Delayed Payments

Once a claim is submitted and accepted, an insurance company must send a payout to the policyholder. The policyholder should receive compensation in a timely manner. Many insurance companies try to deter policyholders from pursuing compensation by delaying payments as well as the process of achieving payments. This can create financial problems for the insured who may need their payout as soon as possible. 

Discounted Payments

To increase their profit margins, insurance companies may often try to offer the insured less money than their claim is worth. Without the proper compensation, the damages may not be fully covered, even though you have paid for reasonable coverage when choosing your policy. Discounted payments are an act of bad faith, which can result in legal action being taken. 

Failure to Conduct an Investigation

When an insurance company fails to conduct an investigation properly, it is important to reach out to a lawyer as soon as possible as they are violating your legal rights. Claims that require compensation or payout should be done quickly and thoroughly, in order to prevent financial or emotional stress on a policyholder. Companies who choose to avoid investigation are typically avoiding payment, which is not only illegal but also immoral. 

Failure to Affirm/Deny Coverage

To prevent policyholders from pursuing compensation, an insurance company may take an unreasonable amount of time to complete an investigation. This also delays the payment process as the claim is neither affirmed or denied during this time. Insurance companies do this in order to increase their profit margins. 

Contact Davis Law Group

If you believe your insurance company is acting in bad faith, don’t hesitate to contact the professionals at Davis Law Group. Our attorneys are experts at the complex law that pertains to insurance and we will work assiduously to help you receive the compensation that you deserve. We go after insurance companies daily for violating policyholder’s legal rights, and we can do it for you too. It’s important to know that you are not alone. Our attorneys are here to stand by your side and represent you through some of life’s greatest challenges. Contact us today to schedule a free consultation.

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