Insurance policies offer financial protection in the event of certain kinds of losses or damages. When an insurer fails to honor the terms of a policy arrangement, particularly by engaging in bad faith practices, it can leave policyholders feeling frustrated, vulnerable and unsure of what to do next.
Bad faith is an umbrella term. It refers to a wide range of behaviors that insurance companies may engage in when skirting their obligations to policyholders and others who have the right to make a valid claim against a policy. One of the most common kinds of bad faith behaviors that insurers engage in involves a failure to communicate.
A bad faith failure to communicate occurs when an insurance company intentionally delays or avoids communicating with a policyholder about their claim. This bad faith approach may involve failing to respond to inquiries, not providing updates on the status of a claim or neglecting to inform a policyholder of important decisions related to their coverage. Such behavior is not only unethical but can also be unlawful.
If your insurer is acting in bad faith
Because bad faith insurance practices are generally illegal, if your insurer has been refusing to respond to calls and emails – or generally failing to keep you meaningfully informed as your claims process unfolds – you may be in a strong position to take legal action accordingly.
Once you receive personalized legal guidance, it is likely that your representative will want to send a formal letter or email to your insurer requesting an update on your claim. They’ll likely request a clear response within a specific timeframe, typically 10 to 15 business days. Written communication creates a paper trail that can be used to demonstrate the insurer’s failure to respond.
If an initial communication from your legal team does not result in a proper response, it may be wise to escalate your concern and seek damages, depending on the scope and severity of your situation.
