Dealing with a Bad Faith Denial of an Insurance Claim

What Can You Do When an Insurance Company Doesn’t Play Fairly?

When you have suffered losses because of an accident, the first place you will likely turn is to your insurance company—after all, that’s why you have insurance. But don’t be surprised if the insurance company drags its feet, or your agent calls and offers you far less than you actually lost. It happens all the time—insurers try to delay, deny or diminish legitimate claims, hoping that customers will settle for less in the end.

Here’s the first thing to remember—insurance companies are in business to make a profit, and have a duty to maximize their value to their shareholders. One of the ways they do that is to minimize the amount they pay out to resolve claims . Their goal is not to have the most satisfied policyholders, but to meet shareholder expectations. Consider the findings of a report issued in the late 90s—a one percent reduction in payouts by a major insurance company provided a 28 cent increase in earnings per share for company stockholders.

So how can you minimize your risk?

Experts say that the best way to protect yourself is to work with a reputable insurance company. Remember, though, that just because an insurance company is a household name does not mean they won’t try to make life difficult for you. Consumers report problems with even the most well-known insurers. It doesn’t hurt, though, to research the claims payment records of an insurance company to see which providers are more likely to withhold or minimize claims payouts.

Even if you have an insurance policy, you still have options:

  • File a written complaint with state insurance regulators
  • File a lawsuit against the insurance company
  • Contact personal injury lawyers in pennsylvania to determine if a class action is possible

Contact personal injury lawyers in pennsylvania Neal S. Axe

To schedule a free initial consultation, send us an e-mail or call us at (856) 795-8788. We check our messages day and night, and will meet with you any time, 24 hours a day, seven days a week. If you can’t come to our office, we will visit you in your home, the hospital or a nursing home facility.

We take all personal injury claims on a contingency basis. There are no legal fees unless we recover compensation for your losses.


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  • New Jersey Bar Association
  • New Jersey Bar Association