Almost everyone purchases insurance – or is otherwise protected by an insurance policy – with the expectation that the insurance carrier behind such policies act in good faith in processing claims. We pay large premiums month-after-month to protect ourselves against risks that we hope and pray never occur. We take comfort in the fact that if something awful happens, we have insurance coverage.
However, the unfortunate reality is that your insurance company would not be profitable if they paid every claim, even if they all are valid. It is upsetting but true that all insurance companies regularly deny valid claims and we cannot realistically expect the insurance carrier’s support and allegiance when we need them the most – in the case of a claim.
In the event of a large claim, it is crucial to engage an experienced attorney who can assist in getting you the insurance coverage for which you paid.
You must immediately notify your insurance company of any accident or injury, however do not communicate with the insurance company beyond giving notice as such can only prejudice your claim. Anything you say in writing or on the telephone may well be used against you and you may innocently say the wrong thing or provide incomplete or ambiguous information that triggers a denial of your claim. Once the claim is denied, the claimant faces an uphill battle.
Do not rely on a self-serving opinion of a claims adjuster and never ask insurance advice from your insurance broker. While you think your broker is impartial, they receive bonuses from the carriers they sell for all their policies that do not file a claim.
Every single day there are unfair claims practices employed against insureds. In New Jersey, for example, the processing of claims is regulated by a number of statutes including the Unfair Claim Settlement Practices Act N.J.S.A. 17B:30-13.1 which gives holds carriers liable for breaching the carrier’s (i) duty of good faith, (ii) fiduciary duty, (iii) the implied covenant of good faith and fair dealing, and leads to a legal claim for failure to settle.
Some insurance companies are infamous for low balling settlements or dragging out a claim for so long that the suffering insured has no choice but to cave in and accept a less than fair and just resolution. Do not fall prey to your insurance company. Do not be a victim; be proactive from the very beginning and avoid the tactics insurance carriers use to delay and deny valid claims by retaining us to handle your claim.
Every insurance claim case is different; Some can be settled without going to court; while others may require a trial to resolve the dispute. In either event, the quality of your representation is usually the difference between a small recovery and a huge one!!!