Insurance coverage is supposed to be about peace of mind. It is a regularly occurring expense that we hope to never use–but having a policy in place is supposed to mean we are protected when we do. If disaster strikes and your insurance company fails to provide the protection you have paid for, you may have a lawsuit against it known as a bad faith action.

Bad Faith Insurance Claims in Oklahoma

Insurance companies owe their policy holders a special duty of care. Unlike most business relationships, which generally require only reasonable care, insurance companies owe their customers a higher duty of care–a duty of good faith and fair dealing. This is because insurance companies sit in a position of power. They determine claim coverage, wield higher bargaining power, and policyholders depend on insurance companies for protection against loss. In other words, insurance companies must give their customers’ interests equal consideration to their own interests. If an insurance company breaches this duty, the policyholder may have a bad faith claim.

What Do Bad Faith Tactics Look Like?

The good faith and fair dealing duty requires an insurance company to take care of their customers. For example, they must investigate claims quickly, evaluate them fairly, and provide coverage for covered losses in a timely way. In the insurance context, bad faith may look like the insurance company:

• Dragging their feet: If you have experienced a loss, you are likely on a timeline. For example, you need a car to get to work, or you need to be able to move back into your home or other temporary living quarters while repairs are made. Unreasonable delays or demands put you in a compromised position and may make you more likely to accept an amount less than your claim is worth.
• Failing to investigate: The insurance company is obligated to gather the facts concerning your loss and consider all the evidence–including the evidence that supports your claim.
• Misrepresenting terms: The insurance adjuster misrepresents the policy terms. For example, the adjuster falsely states that the policy does not cover your particular loss and attempts to deny coverage altogether.
• Demanding settlement: The insurance company presents a lowball offer with a short window for acceptance–often with a “take this or get nothing at all” statement–they are likely trying to intimidate you to accept the lowball offer. This is a classic example of bad faith.

If you have filed a claim with your insurance company and you are experiencing unreasonable communication delays, disrespectful or intimidating treatment, or an outright denial of coverage, you may have a bad faith action available to you.

How a Bad Faith Action Is Different from a Contract Claim

To be clear, not every dispute with your insurance company rises to the level of bad faith. Sometimes, you and the insurance company may interpret the policy terms differently. The question is simply whether or not a particular claim is covered by the policy. In this case, known as a contract dispute, the court will decide if coverage exists under the policy’s written terms. In a contract claim, your recovery against the insurance company is limited to the policy benefits if the court finds in your favor.

By contrast, a bad faith action considers how the insurance company handled your claim–a question that is independent of the coverage question. Remember, the insurance company owes you a duty of good faith and fair dealing. If the court finds that the insurance company’s actions and behavior fall short of this duty of care, you may be entitled to additional financial damages. In extreme cases, the court may even award punitive damages against the insurance company.

3 Steps You Can Take to Protect Yourself

The key to protecting yourself against your insurer acting in bad faith is to prepare for it. Any time you have an insurance claim to file, protect yourself with these three steps:

1. Document everything: write down the details of every phone call with the insurance company, including the date, time, representative you spoke with, and notes about the conversation.
2. Keep all paperwork and electronic communications: keep every document you receive related to your insurance claim and create an electronic folder to save every digital communication.
3. Do not accept a lowball or high-pressure offer: if you receive a settlement offer from the insurance company that will not make you whole or that comes with pressure to settle promptly, do not accept it.

Finally, if you think your insurance company may be acting in bad faith, get legal advice from an Oklahoma bad faith insurance attorney. Do not delay.

Work with Oklahoma Insurance and Bad Faith Attorneys

Bad faith insurance companies intimidate policy holders and wrongfully deny coverage. The attorneys at Titus Hillis Reynolds Love know the tactics bad faith insurers use and how to fight back. Punch above your weight with Titus Hills Reynolds Love on your side. We help Oklahoma policyholders stand up to bad faith insurers. If you have been offered an unreasonable settlement amount or your claim has been delayed or outright denied by the insurance company, we will explain your options and guide you every step of the way. Contact us today to schedule your consultation. Fight back against a bad faith insurance company and get the peace of mind you paid for.