Perhaps you have had an insurance policy with the same company for years. You never needed to file a claim until recently.
Recently, your office sustained heavy water damage, bringing business operations to a halt, but your insurance company balked at paying your claim. Is this an example of bad faith?
About bad faith insurance
An insurance company may fail to investigate and process a claim in a timely fashion or refuse to pay the legitimate claim of a policyholder altogether. This is the basic foundation of bad faith insurance. The rules about bad faith vary from state to state. However, in the state of West Virginia, this kind of issue is present when an insurance company intentionally denies a claim or fails to process or pay a claim without having a reasonable basis for taking one of these actions.
Business insurance usually includes coverage for floods and other natural disasters, business interruptions from breaks in the supply chain and errors and omissions concerning insurance agents that fail to properly advise a business about their policy and the coverage it provides.
Analyzing the issue
If you are having trouble due to the reluctance of the insurance company to pay your claim, even though coverage for water damage appears in your policy, the insurer may not be fulfilling its obligations properly and you may have cause to initiate litigation. The next order of business may be a professional line-by-line analysis of your policy and further investigation to determine whether your insurer is putting bad faith tactics to work.