Texas Lawbook has published an article by Marc Gravely that highlights the tactics insurers use to gain an unfair advantage in claim disputes.
The article, “Samsung Challenges Insurance Industry Playbook in $400M Claim Dispute,” details a recent lawsuit by Samsung Austin Semiconductor that accuses FM Global of trying to minimize its coverage obligations.
The lawsuit, filed in February, says FM Global’s delay-and-diminish tactics were part of the company’s blanket effort to underpay Texas policyholders.
Mr. Gravely writes, “While the damages in this case are eye-popping, the allegations in the lawsuit paint a picture that is all too familiar for businesses and property owners across the state. Sadly, most don’t have the resources and experience with the law to fight back in the way that Samsung is doing.”
He continued, “The lawsuit alleges that FM Global knowingly underpaid the claim by hundreds of millions of dollars, hiding by exclusions and policy provisions that are ‘plainly inapplicable.’ It also claims that the insurer reached its offer without performing a good faith investigation. Finally, the complaint alleges that that these tactics are part of a broader effort by FM Global to underpay Winter Storm Uri claims throughout the state.
“FM Global’s response is certainly one that resonates with thousands of businesses across Texas that suffered damages from the storm and expected insurance providers to honor the terms of their policies. Sadly, people today almost expect that their insurer will deny a covered loss, underpay or delay their claims,” Mr. Gravely added.
To read the full article, click here.