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How to Protect Yourself from Bad Faith Lawsuits After the Car Accident

A car accident can be devastating to the people involved. When somebody is involved in a car accident, they will need to file for compensation. This is because car accidents can render one unable to work and therefore, they will lose their income. It is also true that a car accident can make one immobile or disabled.

The emotional trauma of getting involved in an accident can also be a reason for one to file for compensation. When you contact a Bergen County car accident lawyer, they will guide you on the right procedures to follow so that you can be compensated.

There are times when the insurance company may fail to pay claims due to the firm’s negligent acts or due to their poor judgments. When a policyholder files for a tort claim, this can be referred to as a bad faith claim.

A bad faith lawsuit can be damaging to the insurance company involved. Bad faith claims can be a result of simple reasons or catastrophic reasons on the part of the insurance company. This will be dependent on how the insurance company responds to the claim.

There are many ways an insurance company can protect itself from a bad-faith lawsuit.

Ways to prevent bad faith claims:

Respond to Policyholders appropriately

Many insurers are hit with bad faith claims because they do not respond to policyholders‘ claims in time or in the right manner. As such, one of the best ways to avoid this kind of claim is to take care of the needs of policyholders when the need arises. Communicate with your policyholders on a timely basis. If they apply for claims, you must respond to them professionally and truthfully.

Investigate all Claims to their Full Extent

All files presented must be investigated to the fullest. An adjuster should investigate all files to ensure that they are handled with care and utmost faith. Any decision made should be truthful so that when bad faith claims are presented, they will not be successful. In the investigations, all passengers should be interviewed, all police reports taken into accounts and the true status of the claims should be established.

Avoid Bundling Sections of the Claim

All claims should be taken into account. The adjuster should not bundle sections of the claims so that they pay only what is reasonable to them. If the entire claim can be settled as a whole, the better for all the parties as the insurer will not suffer bad faith lawsuits. Review all the claims and ensure that the insurer is in a position to negotiate the claims if need be. It is better to solve the payment stalemates early before it becomes a bad-faith lawsuit.

Consider the best interest of the policyholders

Consider the best interest of your policyholders when reviewing the claims. Remember that the policyholders have been paying the premiums. Be careful what you tell the carriers, the vendors, or any other person about the policyholders. This should be done in good faith.