Many people opt to purchase private disability insurance coverage for peace of mind. In the event an injury or illness prevents them from working and earning a paycheck, they can rely on benefits via their policy.
Unfortunately, all too often, insurance companies will simply deny a claim or underpay it. Other carriers delay claims, bombarding the claimant with unnecessary, continuous requests or paperwork. Some insurance companies also utilize tactics that make it very difficult for a claimant to speak with a person about their claim.
However, such tactics are illegal.
Insurance companies cannot act in bad faith
A private disability insurance company is mandated by Florida law to process claims fairly and in good faith. The law outlines several specific actions that are strictly prohibited.
If an insurance entity is acting in bad faith, a claimant may be able to pursue a cause of action and collect damages above and beyond the benefits he or she is entitled to under the policy.
However, the situation will need to be addressed by a professional who knows the law in thorough detail and can advise on whether an insurance entity has engaged in unlawful handling of a claim.