Bad Faith Insurance Lawsuits
For nearly eight years, Alphonse Smith had no reason to feel anything but good about his car insurance company. It’s quite easy to understand why: in all that time, he had never filed a claim. When Mr. Smith finally needed the insurance he’d paid for all those years to protect him from an uninsured driver, he was wrongly denied coverage.
If your insurance company refuses to pay when you submit a claim that is covered by your policy, you may be able to file a bad faith lawsuit against your company. The (fictional) Mr. Smith was dealing with bad faith based on non-payment of a claim by his car insurance company, but bad faith insurers exists in all areas: life insurance, disability insurance, home insurance, and health insurance.
A bad faith insurance lawsuit is filed on behalf of the insured against her insurance company. Despite the fact that the insured has faithfully paid her premiums in order to secure coverage, some insurance companies repeatedly deny coverage. It’s a move aimed at increasing profits by banking on the fact that some denials will never be challenged.
Most bad faith cases are based upon a frivolous refusal on the part of the insurance company to pay a claim that it is obligated to pay. Courts have also found bad faith in the unnecessary delay of payments on a claim and refusing to reimburse the entirety of the loss.
The law provides that an insured may file a lawsuit against an insurance company whenever the insurance company acts in “bad faith.” In addition to making the insurance company pay the claim, the insured can ask that the insurance company pay interest on the claim, the insured’s attorney’s fees, and punitive damages which are damages intended to punish the insurance company for its wrongful conduct.
Good faith from insurers is not just a goal, it’s the law. If your insurer has been denying you the coverage you paid for, contact GPW to speak with one of our bad faith insurance attorneys.