What is Bad Faith Insurance?


Insurance companies sell you on their ability to help you during bad times. Whether you’re getting help after a car accident, medical emergency, or property damage, the insurance company promises to help you in return for you paying your monthly premium.


Unfortunately for consumers, insurance companies like to make huge profits. They can’t do that if they’re paying out claims all the time. Sometimes, insurance companies refuse to pay claims for reasons that are not justified. 


What is bad faith?


When insurance companies refuse to pay a claim for unjustified reasons, they are acting in bad faith. When insurance companies act in a manner that is unfair or unreasonable to you, the insured, they are acting in bad faith. If an insurance company is withholding benefits of your policy from you, it is acting in bad faith.


What are bad faith examples?


The examples for insurance company bad faith are nearly endless. Lawyers have worked with many clients like you and have seen it all. What some see most frequently is your insurance company:

  • Failing to quickly investigate your claim
  • Refusing to settle your case
  • Refusing to reimburse you according to your policy
  • Denying your claim without providing a reason
  • Terminating your policy because you filed a claim
  • Making low ball settlement offers


Why do insurance companies act in bad faith?


Simply, because they want to make money. Insurance companies are in the business of turning a profit and one of the quickest and easiest ways to make a profit is to refuse to pay or settle your claim.


Insurance companies can receive upwards of several thousand claims per day. They notoriously have practices of denying most of these claims. Many of these claims are denied improperly.


Insurance companies also bank on the fact that you won’t dispute their denial of your claim. And they’re right. Most people don’t dispute their claim. 


That’s where a lawyer can help. Disputing an insurance claim is a complex and time consuming process. They have the experience and the skill you need to fight your insurance company and get you the compensation you deserve. Don’t let your insurance company deny your claim without first speaking with an attorney.


Working with a Lawyer Helps You Recover


You’re dealing with enough. You don’t also need to be fighting with your insurance company to get them to pay your claim.


That’s where your lawyer can come in. When you work with a lawyer, they make sure you have the best chance of recovering everything you deserve. 


Dealing with your insurance company can be more stressful than you anticipated. On top of all the stress you’re currently experiencing, you don’t need this, too. That’s why it’s important you contact us right away so we can get to work on your behalf. By choosing to work with experienced attorneys, you give yourself the opportunity to get the full compensation you need. 


Putting you and your family first means getting representation from a skilled legal firm. Call a Chicago bad faith litigation lawyer today to get started. They’re ready to schedule a consultation and show you how they can help you recover the full compensation your claim deserves. 


Thanks to Childress, Loucks & Plunkett for their insight into insurance claims and bad faith insurance.