How to Recognize Bad Faith Tactics and Take Action
When disaster strikes — whether it’s a burst pipe, fire, or vandalism — small business owners rely on their insurance policies to keep operations afloat. But what happens when the insurer you trusted with your livelihood turns against you?
In Washington State, insurers have a legal duty to act in “good faith” — to fairly investigate, evaluate, and pay claims. Yet, many small business owners don’t realize they’re being mistreated until it’s too late.
At Bastion Law, we fight for business owners who’ve been sidelined by bad faith insurance tactics. Here are five red flags that may signal your insurer is crossing the line:
1. Unreasonable Delays Without Explanation
If weeks go by and your adjuster keeps “checking on things” without real progress or justification, your insurer could be stalling intentionally. In Washington, insurers are required to conduct prompt investigations and communicate clearly. Silence isn’t just frustrating — it could be against the law.
2. Lowball Offers Without Justification
Was your claim payout far lower than the cost of actual repairs or business interruption? Insurers must base their offers on fair market assessments. If they refuse to provide a clear rationale, or ignore professional evaluations you’ve submitted, they may be acting in bad faith.
3. Shifting Stories and Moving Targets
If you’re being asked to submit new paperwork every week or told conflicting information by different reps, that’s more than disorganization — it could be a tactic to wear you down and delay payment.
4. Denial Based on Excuses or Wild Theories
Many bad faith denials hinge on obscure or misapplied policy exclusions. You might hear things like “this pipe didn’t burst, it had been leaking for a long time” or “your coverage doesn’t apply to that kind of damage” — even when it clearly does. If the reason for denial seems flimsy, don’t take it at face value.
5. Threats or Pressure to Settle Quickly
If you’re being pressured to accept a settlement with language that waives future rights or threatens claim denial unless you act fast, that’s a serious red flag. You should never be bullied into silence or fast-tracked into an unfair outcome.
What You Can Do
Document Everything – Emails, calls, and denial letters matter. Keep thorough records. Make sure to communicate with your insurer in writing.
Consult a Legal Advocate – Washington State insurance laws are complex. Having an attorney review your policy and claim can make all the difference.
Push Back, the Right Way – At Bastion Law, we don’t just file complaints. We build cases designed for trial — and that alone often forces insurers to the table.
Your business deserves better than delay, denial, or dismissal. If your claim isn’t being handled with transparency and respect, contact Bastion Law today. We’re Washington’s premier trial firm for insurance bad faith — and we’re ready to fight for your business.
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