6 Insurance Litigation Tactics To Try

Insurance litigation is a complex and often contentious process, involving disputes between policyholders and insurance companies over the terms and coverage of insurance policies. In order to navigate these disputes effectively, it is essential for policyholders to be aware of the various tactics that insurance companies may employ to limit or deny claims. In this article, we will explore six insurance litigation tactics that policyholders should be aware of, and provide guidance on how to respond to these tactics.

Understanding Insurance Litigation Tactics

Insurance companies often have significant resources and expertise at their disposal, which they may use to challenge policyholders’ claims. Some common tactics used by insurance companies include delaying or denying claims, making lowball settlement offers, and using complex policy language to confuse policyholders. By understanding these tactics, policyholders can better prepare themselves for the litigation process and increase their chances of a successful outcome.

Insurance Litigation Tactics to Watch Out For

Here are six insurance litigation tactics that policyholders should be aware of:

1. Delaying or denying claims: Insurance companies may delay or deny claims in order to avoid paying out benefits. This can be a tactic to wear down policyholders and force them to accept a lower settlement.
2. Making lowball settlement offers: Insurance companies may make lowball settlement offers in order to settle claims quickly and cheaply. These offers are often significantly lower than the actual value of the claim.
3. Using complex policy language to confuse policyholders: Insurance policies often contain complex language and technical terms, which can be confusing for policyholders. Insurance companies may use this complexity to their advantage, arguing that policyholders do not understand the terms of their policy.
4. Requesting excessive documentation: Insurance companies may request excessive documentation or evidence in order to support a claim. This can be a tactic to delay or deny claims, as policyholders may struggle to provide the required documentation.
5. Using reserves to limit claims: Insurance companies may use reserves, or funds set aside to pay future claims, to limit the amount of money available to pay out claims. This can be a tactic to reduce the amount of money paid out to policyholders.
6. Making ex parte contacts with policyholders: Insurance companies may make ex parte contacts with policyholders, or contacts without the knowledge or consent of the policyholder’s attorney. This can be a tactic to settle claims quickly and cheaply, without the policyholder having the benefit of legal representation.

Responding to Insurance Litigation Tactics

In order to respond effectively to insurance litigation tactics, policyholders should seek legal representation from an experienced attorney who is familiar with insurance litigation. An attorney can help policyholders to navigate the complex process of insurance litigation, challenge the insurance company’s tactics, and negotiate a fair settlement. Additionally, policyholders should carefully document all communication with the insurance company, including letters, emails, and phone calls, and should not respond to ex parte contacts or accept lowball settlement offers without first consulting with an attorney.

Best Practices for Policyholders

Here are some best practices for policyholders to follow when dealing with insurance litigation:

• Seek legal representation: Policyholders should seek legal representation from an experienced attorney who is familiar with insurance litigation.
• Carefully review policy language and terms: Policyholders should carefully review their insurance policy and understand the terms and conditions of their coverage.
• Document all communication with the insurance company: Policyholders should document all communication with the insurance company, including letters, emails, and phone calls.
• Do not respond to ex parte contacts: Policyholders should not respond to ex parte contacts from the insurance company, and should instead direct all communication to their attorney.
• Do not accept lowball settlement offers: Policyholders should not accept lowball settlement offers from the insurance company, and should instead seek legal representation to negotiate a fair settlement.