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Bad Faith Insurance Denials and How You Should Respond

Insurance companies will typically live up to their standards in light of your accident; however, in certain occasions, you may come across an insurance provider who acts in “bad faith.” Companies have a duty to provide protection and negotiate claims in good faith. Bad faith claims occur when a company chooses to lie or fraud is involved in any way. When a company interferes with your ability to pursue a claim such as in cases where they tamper with a witness, you may need to take steps to change the course of your personal injury claim.

When a company has acted in bad faith, an attorney will help you understand how to respond to the adjuster, based in a bad faith letter. When bad faith is brought up in writing, typically it will get the attention it deserves from the involved company. This is because of the fact that a company can be held liable to pay damages to the insured well above their original compensation due to fraud or other reasons.

Pursuing Legal Action 

Often times, an insurance denial will originally lead to bad faith claims. Many people believe that they do not have options when their claim is denied, but this is far from the truth. This is why it is always important to have an attorney on your side when you want to dispute your denial because you believe that bad faith was involved. When an insurance company fails to investigate a claim, fails to negotiate settlement, or denies a claim even when it is unreasonably so, you have a case.

You may even find that the insurance company breached their own contract by not paying a valid claim after a real loss. Because of this, you could find yourself in a larger case with other concepts, such as punitive damages if the insurance company intentionally denied your claim to cause stress. Because there are many different reasons for a claim denial and many cases of bad faith, you should have an experienced attorney on your side. At Maggiano, DiGirolamo & Lizzi, we care about your case and want what is best for you.

2017-11-13T17:59:02+00:00