How to recognize bad faith tactics and protect your business when your insurer won’t pay
Running a business comes with risk. You carry insurance to protect your property, your income, and your operations. But when your insurance company delays, underpays, or denies a valid claim, the fallout can be devastating. Knowing your rights and your options can make all the difference.
At Bastion Law, we help Washington business owners who’ve been treated unfairly by insurers. This guide outlines the most common issues in insurance disputes — and how you can protect yourself if things go wrong.
Why Insurance Disputes Happen
Most insurance claims are resolved without issue. But when insurers put profits ahead of policyholders, disputes often arise due to:
- Denials based on questionable interpretations
- Payouts that don’t cover actual losses
- Delays with little or no communication
- Constant requests for new paperwork
- Poor explanations for claim decisions
These aren’t just obstacles. In some cases, they may be signs of insurance bad faith under Washington law.
Common Dispute Scenarios
We regularly work with business owners facing disputes over:
- Commercial property damage, including fires, vandalism, or structural losses
- Business interruption, such as income loss from closures or delays
- Equipment breakdowns, where coverage is denied due to alleged misuse
- Ambiguous policy language, used by insurers to limit payouts
If your claim involves these issues and your insurer isn’t being transparent or fair, it may be time to take action.
What Bad Faith Looks Like
Washington law requires insurers to treat policyholders fairly. When they don’t, it may constitute bad faith — and give you the right to seek additional compensation.
Watch for these warning signs:
- Unjustified delays or vague updates
- Low offers without proper valuation
- Denials based on inconsistent reasons
- Pressure to accept a quick settlement
- Refusal to explain claim decisions in writing
If you’re seeing any of these behaviors, don’t assume it’s just part of the process. You have the right to challenge it.
Steps to Protect Your Business
- Keep Detailed Records
Save all correspondence, claim documents, damage estimates, and photos. Clear documentation can be powerful in a dispute. - Review Your Policy Carefully
Understanding your coverage is essential. If the language is unclear, we can help interpret it in the context of your situation. - Stay Professional, But Firm
Push back respectfully when needed. Put concerns in writing and ask for clear answers to any delays or denials. - Get Legal Support Early
Involving an attorney early can help you avoid mistakes and strengthen your position. It also sends a message to the insurer that you’re serious.
Why Choose Bastion Law
At Bastion Law, we focus on holding insurance companies accountable when they fail Washington’s business community. We represent owners across a wide range of industries and understand how insurance delays and denials can impact your ability to operate.
Whether you run a production facility, a storefront, or a commercial rental property, you deserve a legal team that knows how to deal with insurance disputes — and get results.
Speak With Us Today
If your claim is being mishandled, ignored, or denied, we’re ready to help. Contact us for a free consultation and find out how Bastion Law can protect your business.