How to Handle Bad Faith Tactics from Disability Insurance Companies

When you file a disability insurance claim, you expect your insurer to act in good faith and honor your policy. Unfortunately, some insurance companies use bad faith tactics to delay, undervalue, or outright deny valid claims. These practices can leave policyholders feeling frustrated, financially strained, and unsure of their rights. 

If you’re dealing with bad faith behavior, our skilled Philadelphia disability insurance lawyer at Edelstein Martin & Nelson can help you fight back and recover the benefits you deserve.

What Is Insurance Bad Faith?

“Bad faith” occurs when an insurance company fails to uphold its contractual or legal obligations. Disability insurers are required to fairly investigate and evaluate claims. When they intentionally ignore evidence, drag out decisions, or act dishonestly to avoid paying a legitimate claim, they may be acting in bad faith.

Common bad faith tactics include:

• Unreasonable delays in processing or responding to a claim
• Denying benefits without a valid explanation
• Failing to conduct a proper investigation
• Misrepresenting policy terms or coverage limits
• Requesting excessive or repetitive documentation

These tactics can be subtle at first but have a serious impact on your health, financial stability, and future.

What You Can Do to Protect Yourself

If you suspect that your disability insurer is acting in bad faith, it’s important to take immediate steps to protect your rights. Here are a few practical things you can do:

• Document everything: Keep detailed records of every phone call, email, letter, and claim-related communication.
• Review your policy: Familiarize yourself with the exact language of your disability insurance contract so you understand your rights and responsibilities.
• Respond in writing: Always follow up verbal conversations with written confirmation to create a paper trail.

These records can serve as vital evidence if you need to take legal action later, helping demonstrate patterns of misconduct, delays, or miscommunication that support your claim of bad faith behavior.

When to Call a Philadelphia Disability Insurance Lawyer

It’s not always easy to tell whether your insurer’s conduct rises to the level of bad faith. That’s why consulting with a proficient Philadelphia disability insurance lawyer is so important. An attorney can assess your situation, identify any potential violations, and hold the insurer accountable.

A lawyer can help you:

• File a formal appeal or internal review
• Communicate with the insurance company on your behalf
• Initiate a bad faith lawsuit, if necessary, to recover your benefits and additional damages

Many policyholders find that simply hiring legal representation makes insurers take their claims more seriously, often prompting faster responses, more thorough evaluations, and an increased willingness to settle claims fairly and promptly.

Let Edelstein Martin & Nelson Help You

At Edelstein Martin & Nelson, we have decades of experience representing clients in long-term and short-term disability disputes. If your insurance company is acting in bad faith, we’ll work aggressively to enforce your rights and help you secure the benefits you’ve paid for and deserve.

Don’t let an insurance company get away with dishonest practices. Call (215) 731-9900 today to speak with a trusted Philadelphia disability insurance lawyer and schedule a free consultation.