Five Secrets Insurance Companies Do Not Want You to Know
Insurance companies are legally obligated to operate in good faith, ensuring their policyholders have the right to fair compensation. Due to the complex nature of negotiation procedures, many insurance providers attempt to reduce company liability through fraudulent means. The professionals of Daly & Black P.C. provide personalized care and guidance for those facing intimidating legal situations. When insurance companies act in bad faith, hiring an attorney can ensure a claimant receives the necessary assistance they require to obtain full coverage and fair compensation of insurance benefits. Adjusters are trained negotiators and often discourage individuals from seeking legal aid. Daly & Black P.C. outlines various pieces of information insurance companies conceal from their clients.
1. An Adjuster Is a Trained Negotiator
Insurance companies utilize a variety of claim handling techniques in an attempt to reduce compensation costs. Negotiating with an experienced adjuster can be challenging, especially for those unfamiliar with the claims handling process. It is common for individuals to assume that adjusters have their best interest in mind; however, they often manipulate claimants into stating information that could be used to deny their claim later. It is imperative that policyholders understand the terms of their agreement as insurance companies will strive to pay the minimum amount available. Ultimately, adjusters have a way of appealing to individuals on an emotional level and will employ various tactics to entice them into accepting a smaller settlement.
2. They Want Policyholders to Represent Themselves
Attorneys have a comprehensive knowledge of the legal standard to which insurance companies must abide. Due to this expertise, adjusters often discourage people from hiring an attorney. Similarly, insurance adjusters will attempt to use their bargaining power to take advantage of their policyholder’s lack of knowledge and experience while encouraging them to record a statement without the presence or advice of an attorney. Policyholders should seek the assistance of a competent attorney to independently represent their best interest. This is oftentimes the best way to ensure the policyholder will receive the fair compensation they deserve.
3. Insurance Companies Have their Own “Preferred” Providers
Insurance companies have established business relationships with “preferred” providers of services to be rendered for payment of insurance benefits. This includes, but is not limited to, insurance preferred contractors for home insurance claims and insurance preferred doctors or hospitals for health insurance claims. These “preferred” providers are often very reluctant to question the Insurance companies decision to unreasonably underpay or deny a legitimate claim as they rely on the clientele and workload referred to them by the Insurance companies. Therefore, the Insurance company’s “preferred” provider of service does not independently represent your best interest. This explains why Insurance companies will strenuously encourage you to use these “preferred” providers – they will explain to you it is mainly for purpose of convenience. Further, insurance companies will also discourage you from using your own independent insurance provider because they are “too expensive” and will lead you to believe they will not pay for services that are not “pre-approved” by your insurance. However, the fact is that insurance companies have a duty of good faith and fair dealing to compensate their policyholders with all reasonable insurance benefits to which they are entitled after a covered loss. Daly & Black, P.C. encourage all policyholders to elect and choose their own independent provider of services to ensure they are being treated fairly in the claims handling process.
4. An Adjuster is Motivated to Undervalue Your Claim
An insurance company's objective is to generate a profit, so they will attempt to undervalue valid claims. Many adjusters convince the insured they are not entitled to full compensation due to minor damages or past injuries. Consequently, individuals receive significantly less money than they deserve under their policy agreement.
5. Settling is Cheaper for Them
Depending on the degree of a claim, insurance companies are typically motivated to settle. Daly & Black, P.C. recommend individuals hire an attorney for any reasonable dispute that arises regarding the benefit you or your independent service provider believes you justifiably deserve and what the insurance company and their adjuster is willing to pay. Where this occurs, the policyholder has the right to enlist the services of an attorney to bring an action for breach of contract and bad faith against their insurance company. In many of these case, a fair settlement is able to be obtained without having to go to court.
Trusting an Experienced Professional
Daly & Black PC are a team of dedicated attorneys and legal professionals who are committed to fighting for the full coverage and insurance benefits for their clients. By diligently pursuing individual rights, the firm handles property damage insurance claims, health insurance claims, life insurance, wrongful death claims, catastrophic personal injury, and complex commercial litigation.