15 Jul 3 Facts to Know about Insurance Bad Faith
Insurance policies are contracts between policyholders and insurance companies. Basically, these contracts serve as safety nets in the event of an accident or incident that causes someone harm. While policyholders are required to make payments to keep these policies current, the expectation is that insurers will honor valid claims against such policies if or when necessary in the future.
The truth, however, is that insurers do NOT always honor the policies they issue or protect the policyholders with whom they do business. In fact, when insurers use illegal and unfair means to undervalue or deny legitimate claims, they are likely acting in bad faith.
Here’s what all policyholders should understand when it comes to bad faith insurance.
Insurance Bad Faith Practices: What’s Important to Know
1 – Bad faith doesn’t only come in the form of wrongly denying claim.
In fact, insurers can practice bad faith in a number of ways, with some of the more common examples including:
- Failing to investigate claims or using odd methods during claim investigations
- Revising policies after claims have been made against them
- Delaying payouts without reason
- Requiring claimants to submit unnecessary “evidence” to keep their claim going
- Relying on unqualified medical “experts” when making decisions regarding claims.
2 – Victims of bad faith insurance practices can be entitled to damages.
Bad faith insurance not only violates the public’s trust in insurance companies, it also violates the law, and insurance companies can be held accountable for these violations. In fact, when the targets of bad faith insurance practices decide to take action and fight back, they can be entitled to receive:
- The full amount of the original payout they deserved for their claim
- Additional compensatory damages, including potentially attorneys’ fees
- Punitive damages, should it be possible to establish that the bad faith practices are systematic, routine, etc.
What’s more is that even the threat of punitive damages in these cases can be compelling enough to force insurers to admit bad faith and make reasonable efforts to resolve these cases before trial (because, if the case goes to trial, there would be a likelihood of punitive damages being awarded).
3 – Retaining an experienced bad faith lawyer will be essential to holding insurers accountable for their bad faith practices.
Ultimately, bad faith insurance practices can be subtle and difficult to prove, especially for those who have never stood up to an insurer before. Because getting payouts in these cases can be crucial to people’s recovery from other accidents or events, retaining a lawyer before moving forward is crucial.
In fact, an experienced attorney can help you craft the strongest possible bad faith case, getting you on the path to justice and financial recovery.
Contact a Phoenix Insurance Bad Faith Lawyer at the Law Office of Richard Langerman
Have you or a loved one been the target of insurance bad faith? If so, an experienced Phoenix insurance bad faith lawyer at the Law Office of Richard Langerman is here for you, ready to fight for your rights to compensation and justice.
To set up a free, no obligations initial consult with a Phoenix personal injury lawyer, call us today at (602) 240-5525 or send us an email using the contact form at the bottom of this page. From our offices in Phoenix, we provide superior legal services and representation to clients throughout the state of Arizona.