Common Tactics Used By Insurance Companies to Deny or Undervalue Claims
Insurance companies can deploy various tactics to undervalue, delay, or deny claims in an attempt to minimize their payout. One of the most commonly used tactics is to request excessive documentation or unnecessary evidence with the aim of frustrating or confusing the policyholder. The unnecessary delay in gathering evidence can often cause the policyholder to miss important deadlines, undermining their claim.
Another tactic used is to interpret the insurance policy terms in their favor. As policies are often complex, insurance companies can use the policy technicalities to deny or undervalue claims. For insurance policies where pre-existing conditions can exist, the insurance companies can argue that the claim is related to a pre-existing condition and therefore is not covered under the policy.
In some cases, insurance companies can use third-party “experts” who have a bias toward minimizing payout to investigate the claim.
These are just some of the most commonly used bad-faith insurance tactics. Insurance companies can come up with new and innovative ways to reduce their financial liability. However, our Eau Claire insurance bad faith lawyers are familiar with such tactics and can protect you from being a victim of bad faith insurance.
