People buy insurance and pay their premiums because they expect that their insurance company will come through when the need arises. However, some of these insurance companies will try to renege on their obligations. So what are you gonna do if your insurance company does not communicate with you, unfairly denies your claim, or pressures you to accept an unacceptable amount of settlement offer? In such cases, you can consult a bad faith insurance attorney in Los Angeles to help you get what you deserve, as well as protect your rights.
What Is Insurance Bad Faith?
All insurance companies have a duty to act in good faith by fairly paying every clients’ claims. However, if they attempt to deny their obligations to their clients by refusing to investigate, process, or pay the policyholder’s legitimate claim within a reasonable period, they are already acting in bad faith.
The laws surrounding insurance policies and how they are regulated differ from state to state. However, general obligations do exists whichever state the insurance company is located, and failing to abide by these duties may be seen as bad faith. Do keep in mind that no matter what type of insurance you may have, it is still considered as an act of bad faith if your insurer fails to grant your claim in a fair and just manner. Insurance companies who act in bad faith might find themselves faced with a lawsuit, as well as costly fines and penalties.
Common Reasons Why Insurance Companies Get Sued
Here are some of the most common reasons why many insurance companies get sued due to bad faith.
- Failure to pay or deny a claim within an appropriate period of time and failure to provide acceptable reasons why
- Failure to deny or confirm coverage within an appropriate period of time
- Failure to conduct an investigation of the claim within a reasonable amount of time
- Failure to relay essential information to the claimant
- Failure to offer a reasonable settlement when liability is clearly obvious
- Providing the claimant with a settlement that is less than what is due them
- Failure to disclose any policy exclusions and limits
Why Hire an Insurance Bad Faith Lawyer?
Just like any other branch of the law, insurance law is also complex. And to make matters worse, each state has its own set of rules regarding this law. If you are not familiar with them, your insurance company will likely take advantage of you. Experienced lawyers who know how bad faith works increases the likelihood of you winning your case against your insurance company.
Another good reason why you should hire a lawyer is that insurance companies have their own team of lawyers who are used to dealing with such cases. Without a lawyer to protect your rights, your insurance company might be able to successfully pressure you into accepting a low settlement offer.
The fact that you are claiming insurance is bad enough, as it means that either you or a loved one is severely injured or might even have died. Dealing with an uncooperative insurance company on top of it all makes it even worse. Going up against a well-established insurance company might not be the most ideal solution because you likely lack the knowledge, resources, and training to fight them on your own. Fortunately, there are many experienced bad faith insurance lawyers who can help you with your fight.