How Insurance Companies Find Loopholes to Avoid Paying Claims

When you pay for an insurance policy, you expect that your insurer will honor and fulfill the terms of said policy when you need it. Unfortunately, that is not always the case.

A large number of policyholders find themselves baffled by claim denials or delays, as insurance companies take advantage of technicalities to avoid honoring policies. With how insurance companies find loopholes to avoid paying claims, it is important to know that a denial or delay is not the end. An attorney at Bordas & Bordas may be able to help you.

Common Ways Insurers Deny Claims

Through many policy loopholes, technicalities, and more, insurance companies try to avoid paying claims in full. There are some common methods insurance companies employ to do this.

Vaguely Written Policies

Long, drawn-out clauses in policies may be intentionally confusing for policyholders to dissect. If part of a policy seems vague or open-ended, the insurer may have left an opportunity for themselves to make a decision that benefits them over you. This may result in a denial or delay based on the wording.

Policy Exclusions

Many insurance companies have a list of policy exclusions readily available that policyholders may not be aware of. Should the policyholder file a claim, insurers will often rely on an exclusion as a means to reduce or deny the claim, even if it seems outlandish.

Deadlines and Errors

Often, with claims, insurance companies set strict deadlines. Policyholders must provide documentation and follow specific procedures while still meeting these deadlines. The intricacy of the process may allow insurers to take advantage of any small issues that occur, giving the insurer an opportunity to deny your claim.

Pre-Existing Damages

Insurance companies may also argue that certain damages or injuries were not a part of the reported incident. They may allege that the damage existed before the incident, allowing insurers to try and place the responsibility on the policyholder.

Intentional Process Delays

Some insurance companies intentionally try to make the claims process as long as possible to deter policyholders from pursuing full claims or settlements. Signs of intentional delay may include consistent requests for the same information, going through multiple inspections, as well as purposefully taking long pauses between communications.

The Importance of Legal Advice

Navigating the insurance claim process in the aftermath of an accident that may have caused injuries or the loss of a loved one can be difficult. Many insurance companies rely on the average policyholder not knowing enough about the loopholes insurance companies use and being unable to fight for the full benefits of their policies. Having an advocate with experience in challenging insurance companies in court may significantly impact how an insurance company responds to your claim. A legal representative may help you learn about the full breadth of your claim, talk you through denials, and help protect you from underhanded tactics.

Contact an Experienced Attorney Who Understands the Tricks Used by Insurance Companies To Avoid Paying

Facing insurance companies after a denied claim is not a task that you need to handle alone. Considering how insurance companies find loopholes to avoid paying claims, working with experienced legal professionals is essential.

Our bad faith insurance attorneys at Bordas & Bordas are dedicated to standing up for you against insurance companies. Schedule a consultation with our team today to learn how we can help you hold insurance companies accountable.