When you go through an insurance policy, from the policyholder’s perspective, they are patient as long as fair compensation is offered. Unfortunately, this is not always the case, and an example is the case of insurance companies behaving badly and refusing to process claims when they are due, and in some cases not at all, or where there are unnecessary holdups. It is in such cases that a bad faith insurance claim lawyer comes in to assist them fully. This type of lawyers has a focus on the claim that the insurance companies do not act in good faith and do not uphold their obligation to defend and indemnify their insured individuals.
Here, you will learn what bad faith insurance claims are, who bad faith insurance claim lawyers are and how they assist policyholders, and some of the things you must know when you think you have been treated unfairly by your insurance company.
What is a Bad Faith Insurance Claim?
A claimant who cheats their insurance provider in a fraudulent insurance claims scenario is termed in a bad faith claim. In fact, the bad faith insurance claim arises whenever an insurance company performs a breach of duty extending to policyholders. Insurance companies owe a “good faith” duty, which involves a thorough investigation of the claim, prompt processing of such claims and if there is a denial proper documentation of the reasons for denying the claim should be shared.
Bad faith insurance claim arises when the insurer abuses the contract by failing to perform the obligations in the contract as Palace. For such deals, delays or unreasonable declines are too far extraordinarily unreasonable to be sustainable. In extreme circumstances, financial woes, psychological aggravation and sometimes the loss of physical possessions or other valuables also occur.
Common Types of Bad Faith Insurance Practices
Unjust Denial of Claims: Insurers, and especially underwriters, are usually expected to pay for the reason that a risk became actualized. They may make excuses that the exclusion applies or provide bogus explanations of the terms of the policy and deny coverage of legitimate claims. Instead, in some of these cases, they may not even bother to investigate the claim as required.
“If you’re dealing with an unjust denial of your claim following an accident, finding legal advice can be crucial. Learn more in our guide on Where Can I Find Free Legal Advice Following a Car Accident?”
Delays in Processing Claims: In a similar manner, insurance companies have an obligation to settle claims within the stipulated period or a reasonable period. If they proceed to take hours, days, months and sometimes even years, it is pure humiliation and they know it.
Wholly Unsatisfactory Payment: There are instances when insurers do not pay the amount due under the policy, which compels the policyholders to receive less than what ought to be theirs.
Denying A Claim Without Investigating: Before denying a claim, insurance companies are required to assess the claim. Refusal to take such a step could mean that the company has bad faith.
“If your insurance company is delaying or denying payments related to property damage, consider whether you need legal assistance. Learn more in our article Do I Need Home Property Damage Lawyers?”
Policy Terms Misleading or Misconstrued: Policy language is also provided on some occasions, which may be made by insurance companies with the intention of defeating a claim.
Excessive Delegation of Paperwork: In as much as it is common for insurers to have supporting paperwork for claims, unnecessary or unreasonable paperwork requests can be deemed bad faith.
Challenging Bad Faith Claims by Insurance Claim Lawyers
Challenging bad faith claims lawyers for insurance are defense lawyers whose objective is to help policyholders who suffer under the wrongful conduct of insurance companies. They are well versed in insurance law so they know where to turn when faced with demands in the area of insurance claims.
Here’s how these attorneys can help if you are of the opinion that your insurer has been acting in a bad faith manner:
1. Evaluating Your Case
The first step a bad faith insurance claim lawyer will take is to evaluate your situation. Reviewing their policy, understanding the particulars of the claim lodged, and understanding what was the insurer’s conduct for purposes of identifying instances where there was bad faith. This step is very important considering that not every claim denial is bad faith. It should be sufficiently established that the conduct of the insurer was unreasonable or unfounded.
2. Gathering Evidence
If there is a case to advance, your lawyer will commence establishing the case with relevant evidence to be able to support the claim made. This may include communication records between you and the insurer, documents related to your claim, and expert testimony if needed. This evidence will come in handy in proving the case in that the insurance company suppressed the claim in a bad faith manner.
3. Negotiating with the Insurance Company
In most situations, insurance companies wish to resolve issues by negotiation rather than resorting to trial due to the expenses and publicity in court. A lawyer specializing in bad faith insurance claims will aim to get you an acceptable award through negotiations. Lawyers are usually familiar with some of the strategies employed by the insurance companies to reduce their payouts; they are able to counter those strategies.
4. Filing a Lawsuit
Lawsuit may be the next step recommended to you by your lawyer when the negotiations do not work to either of the parties. In such lawsuits, the strategy is to not only seek for what is in the policy but to pursue further compensation for the insurer’s actions that are considered to be bad faith. Some of these damages include recovery for pain and suffering, costs of legal services, and in rare circumstances there may be an award for damages that are in essence a punishment to the insurer for their wrong doing.
5. Representing You in Court
In the event that the action ends up in court and goes to trial, the lawyer who specializes in bad faith insurance actions will act for you at trial. They will gather evidence, call witnesses and present your case to either a judge or a jury. Court cases can be complicated due to many factors; however, a competent lawyer will tell which angles will work and enhance the prospects for winning the civil suit.
The Reasons You Need to Get in Touch with a Bad Faith Insurance Claim Attorney.
On your own, it can be very exhausting fighting an insurance company. These companies have extensive resources and competent legal arms and may employ such tactics to suffocate a policy unsuspecting of legal intervention. Here are a few reasons why hiring a bad faith insurance claim comes in handy:
Understanding of Insurance Law: The lawyers dealing with a bad faith insurance claim litigation specialize in the law regarding insurance companies. Such lawyers can always tell when the insurer has overstepped their bounds and
Leveling the Playing Field: It is common to find that insureds do not know their rights and this is a fact taken prevails when dealing with insurers. A lawyer ensures you are not fighting alone which enables you to get the settlement that you deserve.
Maximizing Compensation: An attorney when retained will do more than just ensure that you are able to recover the money owed to you as specified in the policy, he will also look to recover more if the insurer was reckless. This will include payments for pain and suffering, lost wages and even pain and punishment.
No Fear of Cost: Almost all the bad faith insurance claim lawyers charge their fees on a contingency fee basis hence there is no need for the clients to make any payments unless they win their case. This enables you to seek justice without having to incur any legal fees that are out of pocket.
How to Choose a Lawyer for Your Bad Faith Insurance Claim
If you are contemplating the possibility of hiring a lawyer with a view to helping you advance your keen interest in a bad faith insurance claim, then there are several key factors to put into consideration.
Competence: You need to check that law practitioner that has been representing bad faith insurance claim cases. It is critical to have experience in insurance litigations to grasp how complicated these cases are.
Credibility: Look at the reviews and testimonials that are provided by the previous clients to get an idea of whether the lawyer is worth hiring. Any competent lawyer must have positive reviews and a history of success.
Responsiveness: You want a lawyer who will, throughout the course of events and any communication, keep you briefed and clearly outline all legal options that you have.
Conclusion
In the event that you think your insurance company has denied or delayed payment in bad faith, then it is quite essential to consult a bad faith insurance claim lawyer. Such legal experts will analyze your situation including available evidence, and advocate for you in court. They will help you go toe to toe with massive insurance corporations and enhance your chances of recovering the compensation that you are entitled to.