Why insurance companies delay and deny claims
Insurance companies are businesses. They make money by collecting premiums and investing them, and the longer they hold that money, the more they earn. One way to protect profits is to delay, deny and defend claims.
Under Louisiana law, insurers must act promptly, fairly and in good faith. When they don’t, it may be bad faith, and you may be entitled to more than your original claim. We handle both the underlying injury case and the fight with the insurance company when it refuses to honor its obligations.
Case result. In 2025, Bateman McDonald Law Firm obtained a jury verdict of more than $1,300,000 against a national insurance company for bad faith claims handling practices.
Results may vary. Past results do not guarantee a similar outcome.
TODO: attorney to confirm the verdict wording and amount before launch.
What is insurance bad faith?
Bad faith happens when an insurer acts unreasonably or dishonestly in handling a claim. Common examples include:
- Denying a valid claim without a reasonable basis
- Delaying payment without justification
- Failing to properly investigate a claim
- Refusing to settle a claim within policy limits
- Misrepresenting coverage or policy terms
- Failing to keep the policyholder informed about the claim
- Exposing the policyholder to a judgment above policy limits
Penalties for bad faith in Louisiana
TODO: attorney to supply the bad faith penalty provisions to state here. The old page cited La. R.S. 22:1892 as "50% of the amount owed (or $5,000, whichever is greater)" plus damages and attorney's fees; that wording needs verification before it is used.
Louisiana law provides penalties against insurers that handle claims in bad faith, which can include additional amounts on top of the claim and attorney’s fees. These penalties are meant to punish and deter unfair claims practices.
What happens after an accident
- The insurer is notified. Report the accident to the at-fault party’s insurer as soon as possible. You may also need to notify your own insurer if you have uninsured or underinsured motorist coverage.
- An adjuster investigates. Adjusters review accident reports, inspect vehicles or property, take recorded statements, review medical records and interview witnesses. Remember that the adjuster’s job is to minimize what the company pays. Talk with an attorney before you share information.
- The claim is evaluated. The insurer makes an offer based on its own evaluation, which often leaves out future medical costs, pain and suffering, or long-term income loss.
- Settlement or lawsuit. If a fair settlement cannot be reached, your attorney may file suit.
Insurance claims we handle
- Auto accidents, including liability, uninsured and underinsured motorist, and property damage claims
- Truck and commercial vehicle accident claims
- Homeowners claims, including slip and falls, dog bites and negligent maintenance
- Hurricane and storm damage claims, including wind, flood, business interruption and wrongful denials
TODO: attorney to confirm the firm handles workers' compensation claims (listed on the old page) before adding it back.
Mistakes to avoid with an insurance claim
- Giving a recorded statement without advice. Your words may be used against you later.
- Accepting the first offer. Early offers often leave out future care, lost earning potential, and pain and suffering.
- Delaying medical treatment. Insurers often point to gaps in treatment to minimize or deny claims.
- Posting on social media. Even harmless posts can be used to dispute a claim.