When a person makes an insurance claim, they may believe that it will be approved without question. The reality is that the individual may not get the results they were expecting. The insurance company’s policy may not cover that particular type of injury or accident, leaving the alleged victim without the ability to claim.
Insurance companies do have a bottom line that has to be met. After all, these companies are there to earn money, not to lose it. For that reason, any claim seeking benefits should be carefully considered and only paid a fair award.
What happens when a claimant is denied benefits?
When a claimant is denied benefits, they may turn to an attorney to file a claim against the company or to make an appeal of the decision. In some cases, the insurance company is wrong and overturns the decision. In other cases, the company has to take a firm stance and say no to issuing benefits.
It’s important for insurance companies to have a solid defense as well. If they are taken to court for a bad-faith insurance claim, then they deserve a chance to show that they did everything by the book. While it’s easy for someone to claim that the insurance company denied them unfairly, the reality is that insurance companies do have fairly strict policies and rules that they abide by, so the truth may just be that the claimant does not qualify.
Our website has more on insurance defense and how to protect your business against claims that you’re not doing your job right.