What Does a Bad Faith
Insurance Lawyer Do?
When
you’re involved in an accident, whether it’s a car accident, truck accident, or
motorcycle accident, you expect your insurance company to be there for
you—right? You’ve been paying your monthly premiums, so doesn’t it just make
sense that they fulfill their end of the agreement? Well, this isn’t always the
case. Sometimes, insurance companies act in bad faith.
But
what does bad faith insurance really mean? And what does a bad faith insurance lawyer actually do? Here, we’re
taking a closer look into bad faith insurance to understand why this breach of
contract occurs. We provide examples of bad faith to help you recognize it and
discuss why hiring a bad faith insurance lawyer is essential if this happens to
you.
WHAT IS BAD FAITH INSURANCE?
Bad
faith insurance occurs whenever your insurance company fails to honor its
obligation to its clients, whether by refusing to pay out on a legitimate
claim, failing to properly communicate with its customers, or by delaying the
investigation or claim processing for an unreasonable period of time.
Essentially, if your insurance company is trying to get out of fully honoring a
legitimate claim, they’re acting in bad faith.
For
many, this type of personal injury case might seem strange. Isn’t honoring
claims and protecting the well-being of its customers the purpose of an
insurance company? While, yes, this remains true to an extent, it’s important
to remember that insurance companies are still for-profit businesses. This
means that, at the end of the day, they’re still looking to maximize profits in
any way they can—including paying out as little as possible on claims.
EXAMPLES OF BAD FAITH
INSURANCE
But
what exactly does bad faith insurance look like? For those outside of law or the
insurance business, this concept can seem a bit ambiguous. How do I know my
insurance company has crossed the line? To provide guidance, here are a few
examples of common instances of bad faith insurance:
1. Unjustified claim denial.
Just because an insurance company denies your claim, this
doesn’t mean that they’re acting in bad faith. However, if these deny a claim
that should clearly be honored in your contract agreement, then this is an
example of bad faith insurance. In some cases, an insurance company might deny
a claim without providing any reason or justification to the claimant. This is
bad faith insurance.
2. Extended delays.
Processing an insurance claim doesn’t happen overnight;
however, insurance companies are required to respond and begin processing a
claim within a reasonable amount of time. If they consistently delay the
processing, this could be bad faith insurance.
3. Lack of communication.
Your insurance company is responsible with maintaining
normal communication and keeping you updated during the claims process. If you
find that your insurance company is consistently ignoring you or failing to
provide clear information, this could account for an instance of bad faith
insurance.
4. Failing to conduct a thorough
investigation.
Following an accident or claim, it’s the responsibility of
the insurance company to conduct a proper and thorough investigation. At times,
insurance companies may use deceptive practices when investigating your claim
to avoid paying out. In other cases, an insurance company may simply fail to
even conduct an investigation.
5. Altering your policy.
At times, insurance companies may attempt to change (or even
cancel) your policy after a claim has been submitted. Even if they say that
there is a justification for this update, this is rarely the case and means
your insurance company is acting in bad faith.
6. Undervaluing your claim.
Insurance companies may try to offer you a “lowball” offer
that far undervalues your legitimate claim. They hope that people will simply
accept the first offer because they don’t understand that they have rights to
dispute the initial offer.
WHAT DOES A BAD FAITH INSURANCE
LAWYER DO?
If
you believe your insurance company has acted in bad faith by not honoring a
valid claim, you’ll want to reach out to a bad faith insurance attorney. These
professionals will assess your case, deal with the insurance companies on your
behalf, and if necessary, fight for your rights and legal compensation in
court.
You
don’t want to enter a bad faith insurance case alone. Insurance companies have
entire teams of experienced lawyers with the sole purpose of winning these
types of cases. Unless you’re experienced in law, you’ll likely be out of your
element. Even if you have read up on legal cases, insurance law is complex and
it varies by state. Without a professional legal presence in your corner,
insurance companies may try to pressure you to drop the case or settle for a
low offer that doesn’t represent the entirety of your claim.
Bad
faith insurance attorneys are experienced at going head-to-head with insurance
companies. They know all the tricks, all the maneuvers, and will know what
types of Marketing damages to demand at the beginning of your lawsuit.
Additionally, since many personal injury attorneys work on a contingency basis,
you don’t have to worry about throwing your money away. Working on a
contingency fee means that your lawyer only gets paid if you win.
CONCLUSION – WHAT DOES A BAD
FAITH INSURANCE LAWYER DO?
Insurance
companies should be there when you need them. When they fail to live up to
their end of the agreement, this is called bad faith insurance. Insurance
companies may commit unjustified denials, extraneous delays, poor
communication, or fail to conduct a thorough investigation of your claim. If
any of these scenarios sounds familiar, know that you’re not alone and you’re
not helpless. You do have rights and legal recourse if your insurance company
treats you in such a manner.
If
you live in Colorado and believe your insurance company has acted in bad faith,
reach out to an experienced personal injury attorney in Denver. These professionals can assess
your case, help you understand your rights, and determine the most logical next
step.
If
your case warrants it, they can even help you receive any financial
compensation. When your insurance company fails to uphold their end of the
contract, a personal injury attorney specializing in bad faith insurance will
quickly become your best friend.