How Do Bad Faith Insurance Claims Work?

woman signing insurance papers

You count on your insurance provider to be there when the unexpected happens, such as a car accident. An insurer that fails to honor its contractual obligations and denies a claim payment it owes may be violating the law by acting in bad faith. Holding an insurance company responsible for a breach of contract can be challenging, especially without the help of an experienced personal injury attorney.

At Hardison & Cochran, our North Carolina bad faith insurance claim lawyers have helped many people navigate complicated insurance disputes after personal injury accidents. Keep reading for more information on bad faith insurance claims in North Carolina and how our dedicated attorneys can help you pursue the compensation you need.

What Is Insurance Bad Faith?

An insurance policy is a contract. Insurers must honor the terms of their insurance policies and deal fairly with policyholders. An insurance company acts in bad faith when it does not abide by the terms of its policy.

Usually, bad faith insurance practices involve insurers refusing to pay valid claims to policyholders who should be eligible for compensation according to the terms of their contract. An attorney can review your case to determine if your insurer has acted in bad faith and what steps you can take to hold the insurer accountable.

Types of Bad Faith

Some common examples of insurance companies acting in bad faith include:

  • Not paying a valid claim
  • Not providing a reason for denying a claim
  • Offering less money for a claim than it is worth
  • Failing to investigate a claim in a reasonable amount of time
  • Refusing to make a decision on a claim
  • Delaying requests for approval of medical treatment
  • Threatening policyholders
  • Delaying payment of a valid claim
  • Misrepresenting the terms of a policy
  • Delaying or refusing reasonable requests for records related to a claim
  • Acting in a way that puts the insurer’s profits ahead of a policyholder’s claim

What Are Signs of Bad Faith?

An insurance company might be acting in bad faith if it:

  • Delays making a decision on your claim without a valid reason
  • Threatens you
  • Spends an unreasonable amount of time investigating your claim
  • Does not conduct a thorough investigation
  • Allows an adjuster to treat you poorly or insult you during the investigation
  • Will not respond to emails or phone calls
  • Will not answer questions about your policy
  • Claims to have lost your file
  • Denies your claim without an explanation
  • Makes an insufficient settlement offer and will not negotiate

Choosing a North Carolina Lawyer for a Bad Faith Insurance Claim

Bad-faith insurance claims in North Carolina can be complex. A lawyer can protect your rights by identifying the insurance company’s issue with your claim, addressing any concerns, negotiating a settlement, and taking it to court if necessary for breach of contract. Not every denied claim constitutes an act of bad faith on the insurer’s part. If you do not hire an experienced attorney, you may find it challenging to determine whether an insurer is acting in bad faith.

Contact Our North Carolina Bad Faith Insurance Claim Attorneys

Our bad faith insurance claim attorneys at Hardison & Cochran have extensive experience dealing with insurance companies. We can determine when an insurance company is acting in bad faith by denying a car accident claim or another personal injury claim. We know how to protect your rights to the full extent of the law. Contact Hardison & Cochran today for a free consultation with one of our North Carolina bad-faith insurance claims attorneys.

About the Author

Managing partner Benjamin T. Cochran oversees the operation of Hardison & Cochran Attorneys at Law in addition to representing individual clients in cases involving workers’ compensation and personal injury law.

A lifelong North Carolinian, Cochran knew from his high-school days in High Point that he wanted to be an attorney. He received a B.A. degree in economics and African-American studies from the University of North Carolina in 1999 and then enrolled at the Norman Adrian Wiggins School of Law at Campbell University.