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Insurance Disputes

Insurance Companies Make Promises. We Make Sure They Keep Them.

Most people have some kind of insurance, whether it is health insurance, life insurance, auto insurance, homeowner’s insurance, or any other type of insurance policy. Many people, however, never stop to think about how their insurance works.

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When you buy an insurance policy, you are agreeing to pay a premium in return for which the insurance company agrees to cover the cost of certain expenses as defined by the policy you purchased. In some cases, those expenses are very likely to arise, and in some cases they are not very likely. The premium that you are asked to pay depends on how likely someone who fits your profile is to incur the costs that the insurance company has agreed to cover. The insurance company is a business, so of course most people will ultimately pay more in premiums than the company pays out in claims. However, in some cases, a catastrophic accident or serious illness may result in more claims than the insurance company expected. An insurance dispute attorney can help ensure that this situation doesn’t keep you from receiving your claim.

What is Insurance Bad Faith?

When you pay your premiums, you expect that, in the event that you need to file a claim, the insurance company will act in what’s called good faith; you basically expect that the insurance company will pay the fair value of your claim, in accordance with the terms of your policy. When the company does not act in reasonable compliance with the policy, that is called bad faith.

Sometimes, insurance companies will act in bad faith in the interest of profit, because the less they pay out in claims, the more profit they make. Here are some common bad faith tactics insurance companies use to improve their profit margin:

  • Make every claim wait. Some insurance companies wait at least 30 days before ever paying any claim. They believe that by making consumers wait for their claims to be paid, they are less likely to complain if the company offers a settlement that is not enough to cover the cost.
  • In some cases, large claims will simply be denied on their face. The company may tell you that some documentation is missing, or give some other reason why the claim couldn’t be paid. They believe that many people, when told “no,” will simply accept that answer and let the issue drop. In fact, insurance companies are very good at creating such a complex system that following all of their protocols is very difficult and time-consuming.
  • Some insurance companies are fully prepared to stick to their guns, and defend themselves in court if they have to. They know that, although there is a feeling by some that Americans as a group are “litigious,” this perception is actually false.

How an Insurance Bad Faith Lawyer Can Help

Most people don’t want to get involved in a court battle; they are stressful, complicated, expensive, and time-consuming. Some insurance companies count on this reluctance. They know that for many people, offering a settlement that is insufficient to cover the costs, or refusing to pay the claim altogether, will put an end to the issue. The fact is, they may be banking on your reluctance to file a legal claim or involve an insurance bad faith lawyer.

If you have a concern about an insurance company, and you believe that the company may be acting in bad faith, contact us right away. In some cases, the situation is really an oversight, and can be cleared up quickly with a letter from an attorney. But unfortunately, in some cases, the insurance company be may be counting on you to simply accept their word. We have helped numerous people to recover the full value of legitimate insurance claims.

Taussig, Taussig & Smith handles cases in Denver, Boulder and throughout the state of Colorado.

If your insurance company is refusing to pay an adequate amount on your claim, contact us here for a free case evaluation.