If your insurance company does not act reasonably in disputing or denying your claim, it may be grounds for a lawsuit.
When you buy insurance — whether it’s car insurance, health insurance, homeowner’s insurance or renter’s insurance — you expect that you will be treated fairly. After all, you are paying for both peace of mind and protection in the event that something awful happens, like a car accident, fire, or other event.
However, many insurance companies place profits ahead of people, causing them to unfairly dispute claims in order to avoid losing as much money. This can lead to a lot of turmoil for policyholders, who may even choose to give up on their claim rather than continue to fight for what they are entitled to under their policy.
Insurance companies are required to treat people who hold policies fairly and act in good faith. This is known as the implied covenant of good faith and fair dealing. Even if this isn’t explicitly spelled out in the contract or policy, it is implied that each side will act in good faith. If an insurance company disputes or denies a claim unreasonably, then it may be acting in bad faith. This is a breach of the covenant of good faith and fair dealing.
For example, consider a situation where a person is involved in a car accident. The accident wasn’t their fault, but the other driver drove off and cannot be found. This person can then file a claim under their own insurance policy for uninsured motorist coverage. Essentially, this is when your own insurance company will pay you if another driver is uninsured and causes an accident. It is often used in hit and run cases. If this person’s insurance company denies the claim without a reasonable basis — perhaps they did not investigate the claim and denied it automatically — then that could be grounds for a lawsuit against the insurance company for acting in bad faith. The person would then be able to recover damages from their insurance company for acting in bad faith. Damages in insurance bad faith cases can include both compensatory (the damages for what the person lost) and punitive (damages intended to punish the wrongdoer and discourage others from acting similarly).
Of course, in an ideal world, insurance companies would simply pay the claims that they are legally obligated to pay. Unfortunately, this does not always happen. In those situations, an experienced personal injury attorney may be able to pursue a case for insurance bad faith. If there wasn’t a reasonable basis for an insurer to deny or dispute a claim, a plaintiff may succeed in this type of lawsuit or claim.
If you have been injured or suffered a loss in any type of accident — including a car accident, bus accident, dog bite, slip and fall, truck accident — then you may be entitled to damages. At the Law Offices of Larry H. Parker, we represent people who have been injured through others’ actions. We will fight for your right to receive compensation, and will aggressively pursue your recovery — and will go after insurance companies if they deny or dispute your claim in bad faith. Contact our office today at 800-333-0000 or info@larryhparker.com to schedule a free initial consultation. We never charge a fee unless we get money for you!!
