An allegation of bad faith practices can threaten the viability of your company. Not only can it damage your reputation, but it can also pose a risk that you’ll be slapped with a judgment that’s costly and hurtful to your financial stability. Fortunately, there are some legal defenses you can utilize to try to protect yourself from these claims. Let’s look at some of the most effective so that you have a better idea of how to approach your case.
How can you defend against a bad faith claim?
The facts of your bad faith case will steer the direction of your defense, but you may have several options at your disposal. These include:
- Arguing that the claimant acted in bad faith by submitting a fraudulent or otherwise deceptive claim, thereby eliminating the possibility that your company has acted in bad faith.
- Demonstrating that the claimant failed to adhere to the statute of limitations or other timeframes imposed by the policy in question.
- Presenting evidence that contradicts the assertions made by the claimant, such as by illustrating how your company engaged in a timely and thorough investigation of the claim.
- Attacking the credibility and reliability of the claimant’s accusations such as by pointing out prior inconsistent statements that they’ve made.
Don’t fall victim to a beatable bad faith claim
It can be frustrating and stressful to deal with a bad faith claim. Yet, you can take control of your case and argue for a fair outcome that protects your interests. Of course, there are all sorts of legal nuances that can come into play in one of these cases, which is why it’s a good idea to research the best way to approach your case and seek out any guidance you may need along the way.
