The business model for an insurance company should be relatively simple. Individuals pay for coverage in the event that they suffer some form of an accident or financial loss. Being that most people rarely ever need to file a claim but pay for coverage anyway, the insurance company should be capable of awarding those who do file legitimate claims while still operating at a profit.
Unfortunately, insurance companies are in fact businesses. This means that they will often times make decisions not in the best interest for those they insure, but instead in the interest of making the most money they can. The best way for insurance companies to accomplish this is to deny claims even when individuals are rightfully entitled to compensation. Acts such as these are known as bad faith practices and are in fact illegal.
With giant legal teams and vast experience, there are many tricks insurance companies try to swindle their way out of awarding claims. The reason bad faith practices work is because only 5% of denied claims are ever contested. Even if insurers have to endure costly appeals, settlements, and bad faith penalties for that 5%, denying the other 95% of claims still yields higher profits.
Whether you are up against an auto, medical, health, homeowners, disability or life insurance company, do not let you and your family get bullied around. If you have suffered financial loss you know should be covered by your insurer, research a capable and experienced insurance lawyer immediately. Insurance companies need to be held accountable for upholding contractual agreements just like everyone else and an insurance lawyer can help make this happen.