As an insurer, it's in your best interests to limit the amount you pay out in benefits. Of course, you do right by your clients and pay out when they have legitimate claims. However, not all claims are legitimate, and you need to know when you can reject claims fairly.
It isn't always easy to tell someone that you're not going to pay their claim. It's particularly difficult when they appeal or sue over your company acting in "bad faith," even when they have not supplied you with any information to show that their claim is legitimate.
In cases like this, one frustrated client might turn to the media or start spreading rumors about your business. While people say that all exposure is good exposure, that's definitely not true in the world of insurance. There are too many companies to choose from, and turning clients against your business could hurt your ability to turn a profit.
What should you do if you're being sued by a client?
Your attorney should review the case and claim right away. Attorneys have education in the kinds of claims people make for personal injuries and losses. They're familiar with the kinds of claims people make hoping to obtain money and the claims that are legitimate. Having a second set of eyes reviewing the claim and helping you decide if a case against you has merit is very wise.
Our site has more on insurance defense and what you can do to protect your bottom line. Not all claims are legitimate, and your organization deserves to protect its good name.