Bad Faith vs. Honest Mistake: Know the Difference
Dealing with an injury or fire or other disaster at your home is hard enough, but when your insurance company fails to treat you fairly, it can make an already stressful situation even worse. Insurance companies have a duty to process claims fairly, promptly and in accordance with the law. However, that doesn’t always happen. Sometimes it’s an honest mistake. Other times, it’s bad faith—a much more serious issue.
At Gold, Khourey & Turak (GKT), we’ve spent over 45 years standing up for individuals in Ohio, West Virginia, and Pennsylvania who have been mistreated by insurance companies. If you believe your insurer isn’t playing fair, understanding the difference between bad faith and an honest mistake is crucial. Here’s what you need to know.
What Is Bad Faith?
Bad faith occurs when an insurance company acts unfairly or without reasonable justification to avoid paying what it owes under your policy. Examples of bad faith include:
- Denying a valid claim without reason: If your insurer refuses to pay a legitimate claim with no explanation or justification, it may be bad faith.
- Delaying the claims process unnecessarily: Lengthy delays with no clear cause can indicate the insurer is trying to wear you down.
- Failing to properly investigate: Insurance companies are required to thoroughly examine claims. Ignoring key evidence or facts could be intentional misconduct.
- Offering an unreasonably low settlement: If the payout offered is far below what your policy entitles you to, your insurer might be acting in bad faith.
Honest Mistake or Bad Faith?
Mistakes happen, even with insurance companies. Some common honest mistakes include:
- Administrative errors: Misfiled paperwork or miscommunication can lead to delays or misunderstandings.
- Policy disputes: Disagreements over the meaning of policy terms don’t always mean bad faith.
The key difference lies in intent. Honest mistakes are typically resolved once identified, while bad faith involves deliberate actions to deny or underpay your claim.
How to Spot Bad Faith
Determining whether you’re dealing with an honest mistake or bad faith can be tricky. Keep these points in mind:
- Review their actions: Did the insurer provide clear, reasonable explanations for their decisions? A lack of transparency is a red flag.
- Consider the timeline: Claims should be processed within a reasonable timeframe. Repeated, unexplained delays may indicate bad faith.
- Look for patterns: A consistent failure to communicate, underpayment, or refusal to investigate could signal systemic bad faith practices.
How GKT Can Help
If your insurance company is acting in bad faith, you don’t have to face it alone. The attorneys at Gold, Khourey & Turak are experienced in holding insurers accountable and fighting for the compensation you deserve. Here’s how we can assist you:
- Case Evaluation: We’ll thoroughly review your claim to determine if your insurer’s actions constitute bad faith.
- Aggressive Advocacy: If bad faith is evident, we’ll fight tirelessly to secure the compensation you’re entitled to under your policy.
- Guidance and Support: We’ll help you understand your rights, navigate the claims process, and build a strong case.
Need Help? Get Help. Get GKT.
Don’t let bad faith tactics from your insurance company add to your stress. Contact Gold, Khourey & Turak today. Our bad faith lawyers are available 24/7 by phone or text at (304) 845-9750. You can also reach us through Live Chat or by completing our online form at GKT.com.
With over 45 years of experience, we’re proud to serve clients in Ohio, West Virginia, and Pennsylvania. Whether it’s a simple mistake or intentional bad faith, we’ll ensure you get the justice and compensation you deserve.
Need help? Get help. Get GKT.
