Do Insurance Companies Have to Pay Claims?

Legal Tips and Resources

The short answer is no. But in order to deny a claim, your insurance company must have a legitimate reason for doing so. 

Insurance companies have many obligations to their customers, including:

  1. Paying claims in a timely manner
  2. Paying the right amount owed
  3. Conduct a thorough investigation before denying the claim
  4. Complying with the terms in the insurance policy
  5. Considering the interests’ of the policyholder
  6. Provide a factual and legal reason for denying a claim

Sadly, not all insurance companies comply with these obligations, and instead favor their own interests to the detriment of the policyholder. When an insurance company fails to adhere to their duties, it may be considered a bad faith claim. The policyholder who has experienced bad faith conduct could be entitled to monetary compensation for the damages lost.

Common Reasons Insurance Companies Deny Claims

Many insurance companies are reputable and are not denying claims left and right simply to boost their profits. If they deny a claim, they have a legitimate reason. 

But other insurance companies aren’t the same. The most common reasons we see when an insurance company denies a claim are:

  • Your insurance application had a mistake
  • Your insurance policy doesn’t cover the damage you suffered
  • Your claim contains inaccurate information

No matter why your claim was denied, you deserve skilled legal representation from a bad faith litigation lawyer. We have helped many clients just like you stand up to their insurance company when their claim was wrongfully denied. It can be scary to do that but that’s why we’re here.

Tactics Your Insurance Company May Use

Your insurance company may employ tactics in the hopes that you’ll forget about your claim or simply go away:

  • Unreasonable delays in investigating your claim
  • Delays in paying out your claim
  • Delay in providing you an answer on your claim
  • Not providing you an explanation for a claim denial

Even if you’ve been holding up your end of the bargain by paying your premiums every month, your insurance company may still deny your claim or use tactics to try and make you go away. This is unacceptable and you deserve having a seasoned bad faith litigation lawyer stand by you who will fight for your rights and get you the compensation you are owed. 

Letting your claim go for too long after your denial could be detrimental to your ability to recover. This is why it’s so important that you contact us immediately after your claim has been denied. 

We Are Here to Help You

You’re tired of fighting. We get it. We’re here to help. When you work with us, we make sure you have the best chance of recovering everything you deserve. But we can’t help you until we meet with you. When we do meet, we’ll give you a complete path forward so you can have peace of mind.

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 an insurance claim lawyer right away so they can get to work on your behalf. By choosing experienced attorneys, you give yourself the opportunity to get the full compensation you need.