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What does it mean for an insurance company to negotiate in bad faith?
February 26, 2021
While it might seem that an insurance company’s willingness to negotiate your claim is a good sign, the truth is that not every business enters negotiation in good faith. What does it mean to negotiate in bad faith? What warning signs might you see during the negotiation process?
What is negotiating in bad faith?
While they will approach every claim with the intent to protect their business, insurance companies are expected to negotiate in good faith and
fulfill the agreement in your insurance policy
. However, if an insurance company enters negotiations without the intent to reach a settlement, though, this can be considered acting in bad faith. This may involve:
Negotiating without intending to reach an agreement
Assigning your claim to a new adjuster during negotiations to slow the process
Using threatening, rude or otherwise inappropriate language to intimidate you during negotiations
Failing to reasonably communicate with you about your claim, including ignoring your phone calls, letters or other communications
Pushing for changes to the agreement or making demands after an agreement has already been reached
Not providing you with information that is relevant to your case or hiding information
If you believe that your insurance company has acted in bad faith, whether during the negotiations process or in another part of the claims process, you may want to explore your legal options. You may be able to hold your insurance provider responsible and receive the compensation you are due.