Bad Faith Insurance Tactics in Commercial Property Claims

My hurricane damage claim was denied or delayed – is my insurance company acting in bad faith?

After a major storm hits Southeast Louisiana, business owners expect their insurance companies to step up and deliver the protection they’ve paid for. But for too many property owners in New Orleans, Jefferson Parish, and surrounding areas, the aftermath of a hurricane turns into a second battle, one fought not with wind and water, but with their own insurance carrier. If that sounds familiar, now is the time to speak with a bad faith insurance tactics attorney who can hold them accountable.

Insurance companies are supposed to act in good faith. That means honoring legitimate claims, investigating fairly, and paying what’s owed in a timely manner. But when profit takes priority over policyholders, you may find yourself facing unnecessary delays, lowball offers, or outright denials.

In this article, we’ll walk you through the most common bad faith insurance tactics used in commercial property claims, how to spot them, and what legal options Louisiana business owners have to push back.

What Is Bad Faith in a Commercial Property Claim?

“Bad faith” occurs when an insurance company acts unfairly or dishonestly toward the policyholder, violating the legal duty it owes under Louisiana law.

In the context of hurricane-related commercial property claims, bad faith often shows up as:

• Unreasonable delays in processing, investigating, or paying your claim
• Low settlement offers that don’t reflect actual repair costs
• Misrepresenting policy terms or coverage exclusions
• Failure to properly investigate the cause or extent of damage
• Requesting excessive documentation to stall payment

If your business is located in places like Metairie, St. Charles Parish, or the Northshore region, and you’ve faced any of the above, it may be time to take a closer look.

Don’t wait to act. The sooner you recognize bad faith tactics, the better your chances of building a strong legal case. Bloom Legal Network can connect you with a Louisiana insurance attorney who knows how to hold insurers accountable.

Real-World Examples of Bad Faith Tactics After a Hurricane

Bad faith doesn’t always show up as a blatant “no.” Often, it’s disguised in red tape, confusing communications, or incomplete inspections.

Here’s what it might look like:

1. Blaming Flood for Wind Damage
After a hurricane, insurers may try to shift responsibility for damage from covered wind events to excluded flood events. For example, your commercial roof may have been torn off by hurricane-force winds, but the insurer claims water intrusion was from flooding.

2. Ignoring Your Contractor’s Estimates
You submit a detailed quote from a licensed local contractor, but the insurance company dismisses it without explanation and provides their own “adjusted” number, often far below market value.

3. Endless Requests for Paperwork
You’ve already submitted your business interruption records, financials, and photos, but they keep asking for more without explaining why. This is a stalling tactic meant to delay payment and test your patience.

4. Unjustified Denials
Some business owners across Jefferson Parish and New Orleans report blanket denials citing vague or inaccurate policy interpretations, without a proper inspection.

If any of this sounds familiar, know this: Louisiana law is on your side. With the right legal support, you can fight back.

What Louisiana Law Says About Bad Faith

Under Louisiana law (La. R.S. 22:1973 and 22:1892), insurance companies have a legal duty to process claims fairly and promptly. Violations can result in penalties, including additional damages and attorney fees, if they:

• Fail to pay within 30 days of receiving satisfactory proof of loss
• Misrepresent policy provisions
• Deny claims without reasonable cause
• Fail to initiate a prompt investigation

For commercial property owners in hurricane-prone regions like St. Tammany Parish or coastal areas of Southeast Louisiana, these protections matter. After all, you’re not just fighting for a building, you’re fighting for your livelihood.

What We Learned from Hurricane Katrina

No conversation about insurance claims in Louisiana is complete without mentioning Hurricane Katrina. In 2005, the most catastrophic hurricane in the region’s history exposed massive weaknesses in how insurers handle large-scale disasters. Thousands of businesses in New Orleans and across the Gulf Coast were left with denied or drastically underpaid claims.

Many of those denials were later challenged in court, revealing widespread use of bad faith tactics by insurers who tried to reduce their payouts at the expense of devastated property owners.

Katrina taught Louisiana business owners a hard lesson: having insurance isn’t enough; you need to understand your rights and be prepared to stand up for them.

If you feel your current hurricane claim is heading down the same path, don’t wait for history to repeat itself. Contact Bloom Legal Network; we understand both the legal precedent and what’s at stake.

How a Bad Faith Attorney Can Help

A lawyer familiar with Louisiana hurricane claims and bad faith laws can:

• Analyze your full policy and denial/settlement documents
• Compare damage estimates and flag discrepancies
• Identify unreasonable delay tactics or unfair settlement practices
• Negotiate with the insurer or file suit if needed

Whether you own a restaurant in Metairie, a hotel in New Orleans, or a warehouse in St. Charles Parish, working with the right attorney gives you leverage. It shows the insurer you’re serious, informed, and prepared to take action.

Don’t Settle for Less Than You’re Owed

If you’ve invested years or decades building your business, you shouldn’t be forced to accept less than what your policy promises. That’s exactly what bad faith tactics are designed to do: wear you down until you give in.

But you don’t have to go through it alone.

At Bloom Legal Network, we help connect business owners in Southeast Louisiana with insurance lawyers who understand the tactics insurers use , and how to beat them. Whether your claim was denied, underpaid, or is just dragging on without explanation, it’s worth having someone on your side.

Trust Your Instincts!

If something feels off with your claim, it probably is. You know your business. You know what was damaged, how long your operations have been affected, and what it will truly cost to get back on track.

Trust that knowledge. Then trust us to help you act on it.

📞 Call Bloom Legal Network at 504-599-9997
📧 Email info@bloomlegal.com

We’ll connect you with a Louisiana property damage attorney who can take the pressure off your shoulders and make sure your claim is handled the way it should be , lawfully, fairly, and promptly.