Bad Faith Insurance Claims Are An Issue If Your Business Suffers From A Fire


When a fire impacts your business, you need to turn to your insurance company to avoid total loss. But what happens when you find out that your policy doesn't cover fire and that this information was not shared with you? Then you have commercial litigation on your hands, because your insurance company likely committed a bad faith act against you.

Bad Faith Does Include Failure To Disclose Policy Limits

Commercial insurance laws can be very difficult for many people to understand. They are even complex for people who have been involved in the business world and who have experience with these kinds of lawsuits. However, it is important to remember that a failure to disclose policy limits (such as your policy not covering a business fire) is a bad faith act by your insurance company. Bad faith acts are steps taken by your insurer that are not done to protect you. A failure to disclose policy limits falls under bad faith because you were kept ignorant of an important aspect of your policy and you are left with a hefty repair bill that will cost you a lot to manage. It can also be a major problem.

Why Insurance Companies Commit Bad Faith Acts

Most insurance companies don't commit bad faith acts on purpose. In fact, there's a good chance that your insurance company didn't mean you any harm when they failed to disclose your policy limits. However, that failure is still a bad faith act, even if it wasn't done intentionally.

And unfortunately, some companies simply perform these acts to get extra money from their insured clients. As a result, it is critical to know your rights and to pursue these cases, while preparing careful for the kinds of defenses your insurer is likely to use.

Defenses That May Be Used Against You

When you take your commercial insurance company to court for a bad faith insurance claim, expect some complications. They are likely to come at you with a variety of defenses, claiming that your statute of limitations passed, that you tried to breach your contract, or that you actually performed an action that was also in bad faith.

For example, the company may state that you tried to file an inaccurate claim or one that wasn't worth what you claimed. The idea here is to showcase bad behavior by you in order to either defend their own or show that their actions were in reaction to your bad faith.

The complications of this kind of case make a commercial litigation attorney vitally important for your business. These specialists will take the time to fully understand your case, assess whether you are right or wrong, and find a way for you to win.

About Me

Law Information Everyone Should Know

Hi, my name is Jessica Hawkins and welcome to my law blog. My mom and dad are both attorneys so I grew up with a lot of law talk around the house. Even though I decided not to become an attorney, I still have an interest in the law. Plus, when I visit my parents, that's all they want to talk about, so I still learn what I can about the law so that I can join in on the conversation. I wanted to create a blog to inform others about various aspects of the law. In this blog, you'll also find out about the different types of attorney specialties and when it's best to consult an attorney. I hope that you find my blog useful and that it helps to answer your law questions.

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