Is Your Insurance Company Watching You? What “Bad Faith” Means for Your Claim

Table of Contents show

You know that feeling when you think someone’s watching you? Well, if you’ve filed an insurance claim and suspect your company isn’t playing fair, that feeling might not be paranoia. Insurance companies have been known to hire private investigators to follow claimants around, and honestly, it’s more common than most people realize.

Here’s something that might surprise you – insurance surveillance isn’t necessarily illegal. But when it crosses certain lines or gets used to intimidate legitimate claimants, that’s when things get murky. And if you’re dealing with what you suspect are bad faith insurance practices, understanding how surveillance plays a role could be the key to protecting yourself.

What Exactly Is Insurance Bad Faith?

Before we dive into the surveillance stuff, let’s make sure we’re on the same page about bad faith insurance practices. Think of your insurance policy like a contract – you pay premiums, and in return, your insurance company promises to have your back when things go wrong. Bad faith happens when they don’t hold up their end of the bargain.

The Basics of Bad Faith Claims

Bad faith isn’t just about denying your claim (though that can definitely be part of it). It’s about how insurance companies handle your claim. Are they investigating it fairly? Are they communicating with you honestly? Are they trying to settle for way less than your claim is worth?

Here’s what bad faith typically looks like:

Unreasonably delaying your claim processing
Denying claims without proper investigation
Offering settlements that are way below what your claim is actually worth
Failing to communicate important information about your policy
Making you jump through unnecessary hoops to get your benefits

I’ve seen cases where people waited months for basic claim approvals that should’ve taken weeks. That’s not just frustrating – it’s potentially bad faith.

Why Insurance Companies Sometimes Act in Bad Faith

Look, I’m not saying all insurance companies are out to get you, but let’s be real about the business model here. Insurance companies make money by collecting premiums and paying out as little as possible in claims. Sometimes, that creates incentives to cut corners or drag their feet on legitimate claims.

The pressure to keep costs down can lead to some pretty questionable practices. Some companies have internal policies that basically encourage claims adjusters to deny first and ask questions later. Others have bonus structures that reward employees for keeping payouts low. It’s a business, and sometimes, business decisions overshadow their promise to you.

How Insurance Surveillance Actually Works

Now, here’s where things get interesting (and a little creepy). When insurance companies suspect fraud or want to minimize their payouts, they often turn to surveillance. We’re talking about hiring actual private investigators to follow you around and document your daily activities.

The Private Investigation Process

Imagine this: you’ve filed a disability claim saying you can’t work because of a back injury. Next thing you know, there’s a guy in a van parked across from your house with a camera. He’s not there to rob you – he’s there to see if you’re really as injured as you claim to be.

These investigators are usually pretty good at what they do. They’ll follow you to the grocery store, record you walking your dog, and document everything you do that might contradict your claim. They’re looking for what the industry calls “inconsistent behavior.”

The surveillance typically includes:

Video recording of your daily activities
Photos of you doing various tasks
Documentation of where you go and when
Sometimes even social media monitoring (we’ll get to that!)

What They’re Looking For

Insurance investigators aren’t just randomly filming you for fun. They have specific goals. If you’ve claimed you can’t lift more than 10 pounds due to injury, but they catch you carrying heavy grocery bags, that’s gold to them. If you say you can’t drive because of your condition, but they film you behind the wheel, that’s going to be a problem for your claim.

They’re also looking for patterns. Maybe you can’t do physical labor anymore, but they want to see if you’re exaggerating how limited you really are. The tricky part is that many legitimate injuries are invisible or vary day by day, but surveillance footage doesn’t always capture that complexity. It can’t show the pain you might be in, or how much that simple activity set you back for the rest of the day.

When Surveillance Crosses Legal Lines

Here’s where things get legally dicey. While insurance companies have the right to investigate claims, there are limits to what they can do. When surveillance becomes harassment or violates your privacy rights, it might actually strengthen your bad faith case.

Privacy Rights and Reasonable Expectations

You have a reasonable expectation of privacy in certain places – like inside your home, in your backyard, or in private medical appointments. If investigators are using telephoto lenses to peer into your windows or following you into private spaces, they’ve probably crossed a line.

I’ve seen cases where investigators got way too aggressive. Following someone to their doctor’s appointments? Probably okay if they stay in public areas. Trying to record conversations with medical staff? Definitely not okay.

Harassment vs. Legitimate Investigation

There’s a difference between documenting your activities and harassing you. If the same investigator is following you every single day for months, showing up at your kids’ school, or making their presence known in a way that’s clearly meant to intimidate you, that’s harassment.

Some red flags that surveillance has gone too far:

Investigators approaching your family members or neighbors
Following you to private medical appointments and trying to gather information
Continuing surveillance for unreasonably long periods
Making their presence obvious in a way that seems designed to intimidate
Trespassing on private property to get footage

The Intimidation Factor

Sometimes, insurance companies use surveillance not just to gather evidence, but to pressure you into dropping your claim. They want you to know you’re being watched. The psychological pressure of constant surveillance can be intense, especially when you’re already dealing with injuries or financial stress.

If you notice surveillance that seems designed more to intimidate than investigate, that could actually be evidence of bad faith. Courts don’t look kindly on insurance companies that use scare tactics against legitimate claimants.

Types of Claims That Trigger Surveillance

Not every insurance claim gets the surveillance treatment, but certain types of claims are way more likely to attract unwanted attention. Understanding which claims typically trigger investigation can help you know what to expect.

Disability Claims

Disability claims, especially those involving back injuries, chronic pain, or mental health conditions, are prime targets for surveillance. Why? Because these conditions can be hard to verify with simple medical tests, and symptoms can vary from day to day.

If you’ve filed a disability claim, there’s a decent chance you’ll encounter some form of surveillance. Insurance companies want to see if your daily activities match what you’ve reported about your limitations.

Workers’ Compensation Cases

Workers’ comp claims are surveillance magnets. Insurance companies are looking for evidence that you’re either not as injured as you claim, or that your injury didn’t actually happen at work. They might follow you to see if you’re doing activities that contradict your reported work restrictions.

I’ve seen workers’ comp surveillance that documented everything from grocery shopping to yard work. The investigators are looking for any activity that might suggest you’re capable of doing more than your claim indicates.

Personal Injury Lawsuits

If you’re suing someone else’s insurance company after an accident, expect surveillance. They want to document your daily activities to argue that your injuries aren’t as severe as you claim, or that you’ve recovered more than you’re letting on.

Personal injury surveillance often focuses on physical activities. Can you walk normally? Are you participating in sports or recreational activities? Do you seem to be in pain when you think no one’s watching?

Large Financial Claims

The bigger the potential payout, the more likely you are to face surveillance. If your claim is worth hundreds of thousands of dollars, insurance companies will invest in investigation to try to reduce their exposure.

High-value claims get the full treatment – professional investigators, extended surveillance periods, and detailed documentation of everything you do.

Red Flags: When Surveillance Becomes Bad Faith

Not all insurance surveillance constitutes bad faith, but there are definitely warning signs that the investigation has crossed ethical or legal lines. Recognizing these red flags can help you protect your rights and potentially strengthen your case.

Excessive Duration and Intensity

Legitimate surveillance usually has reasonable time limits. If investigators have been following you for months without any apparent evidence of fraud, that might indicate bad faith. Insurance companies should be conducting focused investigations, not fishing expeditions.

Some warning signs of excessive surveillance:

Daily surveillance continuing for months
Multiple investigators taking shifts to watch you 24/7
Surveillance that continues even after you’ve provided additional medical documentation
Investigation that seems disproportionate to the size of your claim

Invasion of Privacy

When surveillance moves from public observation to privacy invasion, you’re dealing with bad faith tactics. Insurance companies might claim they’re just being thorough, but there are legal limits to what they can do.

Privacy violations might include:

Recording you inside your home
Following you into private medical facilities
Attempting to access your private medical records without permission
Surveilling you in areas where you have a reasonable expectation of privacy

Intimidation Tactics

Some insurance companies use surveillance as a weapon to pressure claimants into accepting low settlements or dropping claims altogether. This is where surveillance crosses from investigation into intimidation.

Signs of intimidation include:

Making their surveillance obvious to create psychological pressure
Approaching your family members or employers
Following you to sensitive locations like therapy appointments
Continuing surveillance after you’ve complained about harassment

Misrepresenting Surveillance Evidence

Bad faith can also involve how insurance companies use surveillance evidence. Taking footage out of context, editing videos to misrepresent your activities, or drawing unreasonable conclusions from limited surveillance can all constitute bad faith.

For example, if surveillance shows you having one good day after weeks of documented pain and limitation, but the insurance company uses that single day to deny your entire claim, that’s potentially bad faith. It’s like judging a whole book by one sentence!

Your Rights When You’re Under Surveillance

If you discover you’re being surveilled by your insurance company, you’re not powerless. Understanding your rights can help you protect yourself and potentially use the surveillance to strengthen your bad faith case.

Right to Privacy

You have fundamental privacy rights that surveillance can’t violate. While investigators can film you in public spaces, they can’t trespass on private property or record you where you have a reasonable expectation of privacy.

Your privacy rights include:

Protection from surveillance inside your home
Right to privacy in your backyard or private outdoor spaces
Protection from recording in private medical facilities
Right to be free from harassment disguised as investigation

Right to Know About Surveillance

In many states, you have the right to know if you’re being surveilled. Some insurance policies require companies to notify you if they’re conducting surveillance, though the timing of that notification varies.

Even if you’re not notified upfront, you can often request information about surveillance as part of the claims process. Insurance companies may have to disclose what surveillance they’ve conducted and what evidence they’ve gathered.

Right to Legal Representation

You absolutely have the right to consult with an attorney if you’re facing insurance surveillance, especially if you suspect bad faith. An experienced insurance attorney can help you understand whether the surveillance is legitimate or crosses legal lines.

At McCormick & Murphy P.C., we’ve been dealing with insurance bad faith cases since 1995. We understand how surveillance fits into the broader picture of bad faith insurance practices, and we can help you determine whether your insurance company has crossed the line.

Documenting Surveillance Activity

If you notice surveillance, start documenting it yourself. Keep a log of when you see investigators, what they’re doing, and any interactions you have with them. Take photos of surveillance vehicles or investigators if you can do so safely.

This documentation can be valuable evidence if you need to prove that surveillance was excessive, harassing, or conducted improperly.

How Surveillance Evidence Gets Used Against You

Understanding how insurance companies use surveillance evidence can help you protect yourself and avoid common pitfalls that might hurt your claim.

Context Manipulation

One of the biggest problems with surveillance evidence is that it often lacks context. A few minutes of video showing you walking normally doesn’t capture the pain you experienced before and after, or the medication you took to make that walk possible.

Insurance companies might use a short clip of you appearing normal to argue that you’re not really injured, even if that clip represents your best moment in an otherwise difficult day. They’re looking for that “gotcha” moment, not the full story.

The “Gotcha” Moment Strategy

Insurance companies love what they call “gotcha” moments – footage that seems to directly contradict your claimed limitations. Maybe you said you can’t lift more than 20 pounds, but surveillance shows you lifting a bag of dog food that might weigh 25 pounds.

The problem is that these moments often don’t tell the whole story. Maybe you were having a particularly good day, or maybe you hurt yourself lifting that bag but the camera didn’t capture your reaction afterward. Life isn’t a highlight reel, but that’s what they’re trying to make it seem like.

Modern surveillance often includes monitoring your social media accounts. Insurance investigators will look for photos or posts that contradict your claimed limitations. That vacation photo where you’re smiling and looking healthy? They’ll use it to argue that you’re not really suffering.

Be very careful about what you post on social media during an insurance claim. Even innocent posts can be taken out of context and used against you. Think of every post as something a lawyer might see in court.

Expert Testimony and Video Analysis

Insurance companies often hire medical experts to analyze surveillance footage and provide testimony about what your activities suggest about your condition. These experts might argue that your gait looks normal, or that your range of motion appears better than what you’ve reported.

The challenge is that these experts are making conclusions based on limited footage, often without understanding the full context of your condition or treatment. They haven’t examined you, they’ve just watched a video.

Protecting Yourself During Insurance Surveillance

If you know or suspect you’re under surveillance, there are steps you can take to protect yourself without compromising your legitimate claim.

Be Consistent in Your Activities

The best protection against surveillance is consistency. If you’ve reported certain limitations, make sure your daily activities reflect those limitations. Don’t push yourself to do things that might contradict your claimed restrictions, even on good days.

This doesn’t mean you should exaggerate your limitations or avoid all activity. It means being realistic about what you report and consistent in how you manage your condition. If you say you can’t lift heavy things, don’t try to move that new couch, even if you feel a little better one day.

Keep Detailed Medical Records

Thorough medical documentation is your best defense against surveillance evidence. Make sure you’re seeing your doctors regularly, following treatment plans, and documenting how your condition affects your daily life.

If surveillance shows you doing something that seems inconsistent with your claim, detailed medical records can provide context about why that activity was possible or how it affected you afterward. Your doctor’s notes can explain the full picture.

Document Your Own Activities

Consider keeping your own log of daily activities, pain levels, and limitations. If insurance surveillance captures you on a particularly good day, your own documentation can show that day was an exception, not the rule.

Your activity log should include:

Daily pain or symptom levels
Activities you were able to do and how they affected you
Medications taken and their effects
Any setbacks or particularly difficult periods

During an insurance claim, treat social media like it’s public evidence – because it basically is. Avoid posting photos or updates that might be misinterpreted or taken out of context.

This doesn’t mean you have to become a hermit, but be thoughtful about what you share online. That hiking photo from before your injury could be dated incorrectly and used against you. Even a simple “feeling great!” post on a good day could be twisted.

Know When to Seek Legal Help

If surveillance becomes harassment, violates your privacy, or seems designed to intimidate rather than investigate, it’s time to talk to an attorney. An experienced insurance lawyer can help you understand your rights and potentially use improper surveillance as evidence of bad faith.

Legal Remedies for Improper Surveillance

When insurance surveillance crosses legal or ethical lines, you may have several options for legal recourse. Understanding these remedies can help you protect your rights and potentially strengthen your insurance claim.

Privacy Violation Claims

If surveillance violates your reasonable expectation of privacy, you might have grounds for a separate privacy violation lawsuit. This could include surveillance conducted on private property, recording in private spaces, or using surveillance methods that are unreasonably intrusive.

Privacy violation claims can result in monetary damages and might also strengthen your underlying bad faith case by showing that the insurance company was willing to break the law to avoid paying your claim.

Harassment and Intentional Infliction of Emotional Distress

When surveillance becomes harassment, you might have claims for intentional infliction of emotional distress. This is especially relevant if the surveillance was conducted in a way designed to intimidate you or cause psychological harm.

Courts recognize that constant surveillance can be emotionally traumatic, especially for people who are already dealing with injuries or illness. If you can show that surveillance was excessive and caused you emotional distress, you might be entitled to additional damages.

Strengthening Your Bad Faith Case

Improper surveillance can actually strengthen your bad faith insurance claim. It demonstrates that the insurance company was more interested in finding reasons to deny your claim than in fairly evaluating it.

Evidence of improper surveillance might include:

Surveillance that was excessive in duration or intensity
Investigation methods that violated your privacy rights
Surveillance that continued after reasonable investigation would have been complete
Use of surveillance evidence in misleading or deceptive ways

Punitive Damages

In cases where insurance surveillance was particularly egregious, you might be entitled to punitive damages. These are damages designed to punish the insurance company and deter similar behavior in the future.

Punitive damages are typically available when insurance companies act with malice or in reckless disregard of your rights. Improper surveillance combined with other bad faith behaviors might meet this standard.

Working with Attorneys During Surveillance Issues

If you’re dealing with insurance surveillance, especially if you suspect bad faith, working with an experienced attorney can make a huge difference in protecting your rights and maximizing your recovery.

When to Contact an Attorney

You should consider contacting an attorney if:

You notice surveillance that seems excessive or harassing
Your insurance company is using surveillance evidence unfairly
You suspect your privacy rights have been violated
Your claim has been denied or undervalued based on surveillance evidence
You’re feeling intimidated or pressured by surveillance activities

Don’t wait until your claim is denied to seek legal help. An attorney can help you understand your rights and protect yourself throughout the surveillance process.

How Attorneys Can Help with Surveillance Issues

An experienced insurance attorney can help in several ways:

Evaluating Surveillance Legality: We can review the surveillance methods used and determine whether they violated your rights or crossed legal boundaries.
Challenging Surveillance Evidence: If surveillance evidence is being used unfairly, we can challenge its admissibility or provide context that tells the full story.
Documenting Bad Faith: We can help document how improper surveillance fits into a broader pattern of bad faith behavior by your insurance company.
Negotiating Settlements: Understanding how surveillance affects your case helps us negotiate more effectively with insurance companies.

The Investigation Process

When you work with an attorney on a surveillance-related insurance case, we’ll conduct our own investigation. This might include:

Reviewing all surveillance evidence the insurance company has gathered
Interviewing witnesses who observed the surveillance
Consulting with medical experts who can provide context for surveillance footage
Investigating the insurance company’s surveillance practices and policies

Building a Strong Case

A strong case involving insurance surveillance requires careful documentation and expert analysis. We’ll work to show not just that surveillance was improper, but how it fits into the insurance company’s overall bad faith behavior.

This might involve demonstrating that:

The insurance company was more focused on denying your claim than fairly evaluating it
Surveillance was used as an intimidation tactic
Evidence was taken out of context or misrepresented
Your privacy rights were violated during the investigation

Recent Developments in Insurance Surveillance Law

The legal situation around insurance surveillance keeps changing, with new court decisions and rules affecting how insurance companies can investigate claims.

Technology and Privacy Rights

As surveillance technology becomes more sophisticated, courts are grappling with new privacy questions. Drone surveillance, GPS tracking, and advanced camera technology are raising new legal issues about what constitutes reasonable investigation versus privacy violation.

Recent court decisions have generally held that insurance companies can’t use surveillance methods that wouldn’t be available to ordinary citizens. If a private person couldn’t legally conduct certain types of surveillance, insurance companies probably can’t either.

Courts are also addressing how insurance companies can use social media in their investigations. While publicly posted content is generally fair game, companies can’t create fake profiles to friend you or hack into private accounts.

The trend is toward allowing insurance companies to view public social media content, but prohibiting deceptive practices to access private information.

Disclosure Requirements

Some states are implementing new requirements for insurance companies to disclose surveillance activities. This might include notifying claimants that surveillance is being conducted or providing information about surveillance evidence before using it to deny claims.

These disclosure requirements are designed to make the claims process more transparent and give claimants a fair opportunity to respond to surveillance evidence.

Regulation of Investigation Companies

There’s also increased regulation of private investigation companies that conduct insurance surveillance. Licensing requirements, training standards, and ethical guidelines are becoming more stringent in many states.

This regulation helps ensure that surveillance is conducted professionally and within legal boundaries, though enforcement can still be inconsistent.

What to Expect Moving Forward

If you’re dealing with insurance surveillance issues, here’s what you can expect as your case moves forward.

The Claims Process Timeline

Insurance surveillance can significantly extend the claims process. Companies often use ongoing surveillance as a reason to delay claim decisions, arguing that they need more time to complete their investigation.

Don’t let extended surveillance become an excuse for unreasonable delays. If surveillance has been ongoing for months without resolution, that might itself be evidence of bad faith.

Settlement Negotiations

Surveillance evidence often becomes a major factor in settlement negotiations. Insurance companies will use any evidence they’ve gathered to argue for lower settlement amounts, while you and your attorney will work to provide context and challenge unfair use of surveillance evidence.

Understanding how surveillance affects your case helps in developing realistic settlement expectations and negotiation strategies.

Trial Preparation

If your case goes to trial, surveillance evidence will likely be a significant component. This means careful preparation to address surveillance footage, expert testimony about what the evidence does and doesn’t show, and presentation of your own evidence about your condition and limitations.

Trial preparation in surveillance cases requires particular attention to how evidence will be presented to a jury and what story the surveillance evidence tells when viewed in full context.

Long-term Implications

Insurance surveillance cases can have long-term implications beyond your immediate claim. If you win a bad faith case involving improper surveillance, it might affect how insurance companies handle similar cases in the future.

These cases also help establish legal precedents about privacy rights and appropriate investigation methods, contributing to the broader development of insurance law.

Taking Action: Your Next Steps

If you’re dealing with insurance surveillance, whether you suspect bad faith or just want to protect your rights, here are the concrete steps you should take.

Document Everything

Start keeping detailed records right now. Document any surveillance you notice, keep logs of your daily activities and limitations, and save all communications with your insurance company.

Your documentation should include:

Dates and times when you noticed surveillance
Photos of surveillance vehicles or investigators (if safe to take)
Detailed logs of your daily pain levels and activities
All correspondence with your insurance company
Medical records and treatment documentation

Review Your Insurance Policy

Understand what your policy says about investigations and surveillance. Some policies include specific language about the insurance company’s right to investigate claims, while others might have limitations on investigation methods.

Knowing what your policy says helps you understand whether surveillance activities are within the scope of what you agreed to when you bought the policy.

Be Proactive with Medical Care

Make sure you’re following all recommended medical treatments and keeping detailed records of your medical care. Regular medical documentation provides important context for any surveillance evidence.

Don’t skip medical appointments or avoid recommended treatments. Consistent medical care shows that you’re taking your condition seriously and following professional advice.

Consider Legal Consultation

Even if you’re not sure whether you have a bad faith case, consulting with an attorney can help you understand your rights and options. Many attorneys offer free consultations for insurance cases, and you might learn something that helps protect your claim.

At McCormick & Murphy P.C., we’ve been handling insurance bad faith cases for nearly three decades. We understand how surveillance fits into the bigger picture of insurance bad faith, and we can help you determine whether your insurance company is playing fair.

You can visit our office at 929 W Colorado Ave in Colorado Springs, or call us at (719) 800-9407 to discuss your situation.

Know Your Rights

Don’t let insurance surveillance intimidate you into accepting an unfair settlement or dropping a legitimate claim. You have rights, and understanding those rights is the first step in protecting yourself.

Remember that legitimate surveillance should be reasonable in scope and duration. If surveillance feels excessive, harassing, or invasive, trust your instincts and seek legal advice.

The Bottom Line on Insurance Surveillance

Insurance surveillance is a reality of the claims process, especially for certain types of claims. While insurance companies have legitimate reasons to investigate claims, surveillance can cross legal and ethical lines, especially when it’s used as part of a bad faith strategy to avoid paying legitimate claims.

The key is understanding your rights, documenting everything, and knowing when surveillance has gone too far. If you’re dealing with surveillance that feels excessive, invasive, or intimidating, don’t hesitate to seek legal help.

Insurance companies count on claimants not understanding their rights or being too intimidated to fight back. But with the right knowledge and legal support, you can protect yourself and ensure that you get the fair treatment you deserve.

Remember, you’re not powerless in this situation. Whether surveillance helps or hurts your case often depends on how well you understand the process and how effectively you respond to it. With proper preparation and legal guidance, you can turn the tables and use improper surveillance as evidence that your insurance company isn’t acting in good faith.

Your insurance policy is a contract, and you have every right to expect your insurance company to honor their obligations under that contract. Don’t let surveillance tactics pressure you into accepting less than you deserve.

If you’re facing insurance surveillance and suspect bad faith, you can file a complaint against your insurance company in Colorado, and there are ways to challenge an insurance company’s decision in bad faith cases. The most important thing is to take action to protect your rights before it’s too late.

Don’t let insurance surveillance intimidate you. With the right approach and legal support, you can protect your claim and hold your insurance company accountable for fair dealing. After all, that’s what you’ve been paying premiums for all these years.