If your company has been accused of acting in bad faith, then you need to act now to defend yourself. If you don’t, then you could wind up with a judgment against you that’s far more costly than what otherwise would’ve been seen, and the publicity associated with the case can be damaging to your reputation.
But what’s the best way to defend yourself from allegations of acting in bad faith? Let’s take a closer look.
Tips for defending your company against allegations of bad faith
Remember, for a plaintiff to succeed against you, they must show that you acted unreasonably in delaying or denying their claim. Therefore, if allegations of bad faith start to fly, you may be able to use the following strategies to your advantage:
- Argue that that there remains a material and legitimate dispute of fact, such as how the loss in question was caused or the value of the damage claimed.
- Illustrate how there’s a lack of evidence to support the claim, thereby creating delay.
- Highlight the active steps that your company has taken to investigate the claim.
- Argue that the event or individual in question isn’t covered by the policy.
- Show how the individual who is pursuing the claim has failed to mitigate their damages.
There may be other strong defense options in your case. Thoroughly analyze the facts surrounding the claim in question to see if you can effectively push back against the plaintiff’s arguments.
Don’t face undeserved losses in your insurance dispute
Poorly handled insurance litigation can be costly to you and your company, costing you extensive sums and harming your reputation. Don’t let that happen to you due to inaction. Instead, aggressively seek out the bad faith defense strategies that best protect you and your business, setting you on a path to successful litigation.