Bad Faith Litigation: FAQs

Litigation Law Firm

You invest in insurance for the peace of mind that you will be covered in case an emergency happens. But what happens if your insurance agency denies your claim? As experienced attorneys, like those at Brown Kiely LLP, can explain – Bad faith behavior on the part of insurance providers is unfortunately commonplace. Oftentimes, in an effort to protect their bottom line, insurers will engage in bad faith practices that harm policyholders and claimants. When someone is harmed as a result of bad faith practices, they may choose to pursue litigation. Bad faith litigation is often filed in regards to construction and real estate challenges, improperly valued or rejected medical claims, auto accident issues, and even insurance payouts related to estate administration. 

What is bad faith litigation?

Your insurance policy is a binding contract between you and your insurance provider. An insurance company is legally bound to abide by this contract to accept a valid claim, and if this doesn’t happen, they are acting in bad faith.

What are some examples of bad faith litigation?

There are many ways your insurance agency can fail to honor your contract with them. It is important to note that these are all actions done against a valid claim and a policy holder that is in good standing, meaning you have consistently and accurately paid your payment on time. If you are not a policyholder in good standing, your protections against the following actions may be compromised:

  • Outright denying a claim.
  • Withholding information about a claim. 
  • Delaying payment of a claim.
  • Lowballing settlements.

I’m not sure my insurance company is acting in bad faith, but I’m confused and skeptical. What should I do?

It is recommended that you attend a consultation with a litigation attorney. Insurance policies are filled with legal loopholes that insurance agencies tend to take advantage of. Speaking with a lawyer will give you clarity about whether you have a case and what your next steps should be moving forward.

What is my claim worth?

Unfortunately, it is hard to say outright what your claim is worth when it comes to bad faith litigation. Each settlement is different, but it is common to expect to seek restitution for the initial damages and any injuries that may have resulted from the challenges you have suffered as a result of the bad faith actions of the insurance provider in question.

Do I have to accept the first settlement I have been given?

No, you are not required to accept a settlement that may be below the amount to which you are entitled. An attorney can advise you in re: whether a settlement offer has been fairly valued

Bad faith insurance litigation can be a confusing subject to broach by yourself. If you have any additional questions about what to do when it comes to filing a bad faith claim, do not hesitate to contact an attorney today.

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