It is a known fact that insurance companies are in business to make money. And, it is no secret they do an excellent job at that task, as their home offices are some of the biggest skyscrapers in the urban areas they occupy. The problem is that those profits do not always come from the premiums they command from their clients. Many of those profits are generated by being difficult with claimants when it comes time to collect on damages created by those clients. This is achieved through the claims processing protocol that is always designed to benefit the company and not the injured claimant. And, many times those protocols include bad faith actions in hopes of getting a claimant to either go away or accept a low offer to settle their claim. While the typical injured party does not understand this principle, all legal professionals like the Los Angeles bad faith lawyers at Winthrop Law Group surely do.
When is Bad Faith Occurring?
There are specific rules governing how insurance companies are required to process claims, all of which are skirted by many companies in hopes of reducing a claim value. The insurance company must provide a reason for denying a claim. When they fail in this regard, it is a red flag to consult with an experienced bad faith attorney immediately. Delaying a claim purposely in hopes of the claimant accepting a low-level offer based on dire need is also a bad faith tactic, and this can be recognized by needless requests for more documentation.
What an Attorney Can Do
It is important to understand that a bad faith claim against an insurance provider is a separate legal action that will enhance a claim value significantly. Not only can your attorney maximize the original claim that was being delayed, but another punitive damage claim can be filed specifically against the bad faith insurance company. Punitive damages are considered as punishment for egregious behavior, and can be settled in addition to the original claim for extensive amounts.
Never accept a straight denial from an insurance company for an obvious claim. California residents should always call the Los Angeles bad faith lawyers at Winthrop Law Group.