Insurance Coverage Disputes and Bad Faith

Insurance coverage disputes arise when an insured person requests that their insurance company cover some sort of damages under a policy. The insurance company “disputes” the request claiming the policy doesn’t cover that specific damage. The claim for non-coverage may be due a misunderstanding of the coverage or how the policy works. However, the insurance company may also assert a breach by the insured person.

Insurance Coverage Disputes can arise at any stage of a case. From the initial inquiry into whether a policy exists to complex questions of law, evidence, procedure and strategy.

Common Reasons For Disputes

There are several reasons why a coverage dispute may arise, including:

• Denied claims – Insurance Coverage Disputes can occur if the insurer determines the policy does not cover a loss. Common reasons for denial include procedural errors, insufficient documentation or a belief that the loss falls outside the policy’s coverage.
• Disagreements over policy limits and exclusions – Differing interpretations of policy language related to limits and exclusions. These can include disputes over the maximum amount payable for a claim or specific events or scenarios not covered.
• Timing and scope of coverage issues – Disagreements about when the policy was in effect lead to Insurance Coverage Disputes. Consequently, the extent of coverage provided may result in disputes over whether the insurer improperly denied coverage, underpaid a claim or did not provide timely payments.
• Misunderstanding of policy language or terms – Ambiguities or inconsistencies in policy language or terms can lead to differing interpretations. As a result, misunderstandings between the insurer and the policyholder regarding what the insurance covers.

Fighting Insurance Coverage Disputes

Insurance companies are some of the largest and best funded corporations in the world. They fight hard to wind insurance coverage disputes. They have one purpose – to make money for their shareholders. By law, insurance companies have a duty to protect their policy holders. When the insurance company cheats and fails to provide the coverage paid for by their policy holders and/or fail to abide by insurance laws and regulations, they should be held accountable. Insurance companies fight hard during an Insurance Coverage Disputes. They can take a long time and be very expensive.

For 25 years, Douglas G. Johnson has focused a significant part of his practice on representing insureds in Insurance Coverage Disputes and in suing insurance companies for fraud. If you feel that you are being treated unfairly by your insurance company, call Douglas G. Johnson at Johnson Law today for a free consultation. (907) 277-3090.