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Thu 29 Jul, 2021 Insurance Bad Faith

Avoiding Insurance Company Horror Stories of Mismanagement and Negligence

Hollywood Business Insurance Lawyer Helping With Insurance Mismanagement & Negligence

We’ve all heard the horror stories about insurance companies managing to find a way to deny or underpay legitimate insurance claims, leaving the policyholder in a financial disaster. Fortunately, for people living in Florida, a Hollywood Business Insurance Lawyer at Property Damage Law Firm can help with improperly denied claims, because suing insurance companies is all we do.

Nonetheless, claim disputes aren’t the only issues you have to face when you’re dealing with an insurance company. The problems that eventually lead to claim disputes may have started far earlier in the process with some type of insurance mismanagement or negligence.

What Constitutes Insurance Mismanagement or Negligence During Your Purchase?

When you initially purchase an insurance policy, it’s often an insurance company agent that you’re dealing with. These agents are supposed to ask the proper questions that allow them to recommend a certain type of policy, answer all of your questions, and explain all of the risks and exemptions that may lead to a claim dispute down the road.

However, this is where many types of insurance mismanagement or negligence occurs. Insurance agents have a primary duty to use diligence, reasonable care, and good judgment when selling you a policy such that the policy provides the types and amounts of coverage that is appropriate for you specifically. In other words, the agent should be looking out for your best interests and be very clear about what you’re buying (and not buying). 

Unfortunately, all too often the agent is primarily concerned with making money for the insurance company, and may therefore mismanage your policy from the very beginning. Some common acts that may amount to insurance agent negligence include:

  • Failing to provide you with a policy that includes your requested coverage. Agents have a duty to assess your requests and when selling you a particular policy.
  • Misrepresenting what your coverage includes and doesn’t include. Agents should be knowledgeable about each part of a policy and should not lead you to believe that you have coverage that you actually don’t have.
  • Failing to notify you that your policy is on the verge of cancellation. Your agent must timely inform you if your policy is about to be cancelled, and for what reasons.

Breaking Down the Claims a Hollywood Business Insurance Lawyer Can Assist With

Insurance companies are like any other business: their primary goal is to make money. The only way they can make money is by charging more than they have to pay out. This leads to any number of disputes when a claim has been filed yet the insurance company attempts to deny, delay, or underpay your claim. Some of the most common disputes include:

  • Misrepresenting the types and amounts of coverage included in the insurance policy.
  • Intentionally delaying the claims process.
  • Mishandling information that affects the claim.
  • Understating the actual damage suffered.
  • Denying a claim without a reasonable, and legally supportable, explanation.
  • Bullying, delaying, or misleading a policyholder into accepting an undervalued settlement offer.
  • Delaying the claims process with excess paperwork and blaming inconsequential mistakes.
  • Failing to effectively communicate with the policyholder.
  • Failing to pay medical providers or other specialists after the policyholder has paid their premiums and met their deductibles.

Let Our Law Firm Help You Fight Insurance Mismanagement or Negligence

Generally speaking, we don’t like to think that our insurance company only really cares about making money, but once you understand this, it’s easier to understand why insurance companies work so hard to find ways of denying, delaying, or undervaluing claim payouts. This is why insurance companies spend literally billions of dollars on commercials, most with the common theme that we’re all one big happy family.

Nonetheless, when these tactics rise to the level of mismanagement or negligence, it’s time to fight back. A Hollywood Business Insurance Lawyer at Property Damage Law Firm will help you cut through the insurance company tactics and recover every dollar you’re entitled to. Suing insurance companies is all we do. We offer free consultations, same-day return calls and emails, a multilingual staff, cutting-edge technology, and a contingency fee schedule. We will give your matter our personal attention. Contact us online to schedule your free consultation.