An insurance policy is a contract between an insurance company and the policy holder – the individual who bought the coverage and continues to pay monthly premiums for such coverage. In any contract, both parties are required to follow the terms of the contract and act in good faith. If a policy holder submits a legitimate claim to an insurance company and the insurance company refuses to cover it, it might be viewed as a breach of contract. Insurance companies very often will try to avoid paying out all or part of a claim. If you have read the terms of your policy and believe that your insurer is failing to provide the coverage you paid for, or is not otherwise fulfilling its contractual obligations, then you may have the right to take legal action against the company.
You may have an insurance bad faith claim if your insurance company:
- Fails to respond to your initial claim in a timely manner
- Fails to appropriately investigate your claim and the facts and evidence supporting your claim
- Fails to pay your claim or deny your claim within a reasonable period of time
- Fails to settle within policy limits
- Fails to employ good faith to settle your claim
Taking Legal Action
Victims of insurance bad faith can pursue their legal rights and secure compensation for related losses and damages. At the same time, they may also take legal action to recover punitive damages. These are damages meant to punish the insurer and deter other insurers from acting in a similar manner.
At Panish Shea & Boyle LLP, we have the resources to stand up for your rights against large insurance companies. If you are seeking quality legal representation in a potential insurance bad faith claim, our insurance bad faith attorneys will be happy to evaluate your potential case.
