Facing an insurance bad faith claim can put pressure on your company. You may believe your team handled the claim properly, yet the other side may still question your decisions. When that happens, the evidence from the claim can help show what happened and why you made certain decisions. A strong record gives you facts to address the allegations and explain your side of the dispute.
Here are some types of evidence that can support your defense.
Claim investigation records
A well-documented investigation can show that you took the time to examine the facts before making a coverage decision. Keep materials such as:
- Claim notes and inspection reports
- Photographs and recorded statements
- Estimates, invoices and other supporting materials
- Reports from adjusters or investigators
These materials can show what your team reviewed and when it reviewed that information. They also help establish the steps taken before you accepted, limited or denied the claim.
Coverage analysis and policy documents
The policy and your coverage analysis can show why you reached a particular decision. Keep the relevant policy terms along with written notes or analyses that explain how those terms apply to the facts of the claim.
Texas law requires insurers to conduct a reasonable investigation before refusing to pay certain claims. It also requires a reasonable explanation for certain coverage decisions. A record that connects the policy language to the facts can help your defense address these issues.
Communications and claim correspondence
Your communications can show how you handled questions and new information during the claim. Preserve relevant messages with:
- Requests for additional information
- Questions about coverage
- Updates about the investigation
- Explanations for coverage decisions
These can help respond to claims that your team ignored information, failed to answer questions or did not explain its position.
Expert opinions and supporting evidence
Expert reports can support your position when the dispute involves issues such as causation, damage or value. Keep the reports and information the experts relied on, especially when different experts reach different conclusions. This evidence can help explain why you relied on a particular opinion when making your decision.
Build the claim file around the decision
Your claim file should show how the evidence led to the decision you made. Reviewing that file with an attorney can help you find gaps, preserve useful evidence and prepare a focused response to a bad faith claim.