Carrying adequate insurance coverage can provide peace of mind by ensuring that you have a safety net if you are injured. However, even after you have paid your premiums, some insurers are less than forthcoming in holding up their end of the bargain. For some companies, finding any way to avoid paying the settlement you deserve is business as usual.
Business Considerations and Strategic Withholding
Of course, most insurers are for profit businesses, and no one expects such organizations to operate at a loss. But, a problem arises when the bottom line overshadows paying legitimate claims.
The more payments an insurer issues, the thinner their profit margins become. Especially considering the slow economy, some insurance companies are employing increasingly aggressive methods to keep settlements from cutting into revenues.
There are many ways insurers can try to lower or avoid payment at an injured party's expense. For instance, after you are injured, an insurance claims adjuster may try to get you to quickly accept a settlement offer, usually before you have retained an attorney; often though, this is a lowball offer valued at far less than what you are truly owed.
Alternately, an insurance company may use delay to their advantage. While insurers have the time and wherewithal to drag a claim out for months or even years, many individuals do not. You may need money shortly after suffering an injury, or could simply become so frustrated with the process that you will accept a low settlement just to be done with it.
Denying claims outright is another common tactic. Certain insurers initially deny almost every claim, counting on the fact that some injured parties will not pursue further action. Even if your claim is not rejected from the start, adjusters may "fish" for ways to include your situation in a policy loophole; thus, you should be very careful about what information you provide to insurance companies or adjusters.
Even worse than recently employed tactics used during a troubled economy, some insurance companies have permanently altered how they treat their policyholders in order to maximize profits. Recent changes in insurance claims handling policies have resulted in a revolution in insurance industry operations. Major insurers, working closely with prominent consulting firms, have redesigned how claims are handled in an effort to reduce the number of claims payments. The result has been a drastic change in the relationship between the insured and insurer. Insurance industry claims departments have become profit centers, with the corporate incentive to maximize profits superseding the rights of policyholders.
Injured Parties Hurt
Unfortunately, the ones who bear the burden of these profit-maximizing procedures are those who are injured and need the insurance benefits they thought they could count on. Obviously receiving a lower settlement or no settlement is undesirable, but even beyond the monetary costs are the stress, time and heartache that accompany battling an insurance company.
If you have been injured, do not fall victim to questionable insurance company tactics; contact an attorney to ensure you receive every penny you deserve.
