If you filed a legitimate insurance claim only to encounter inordinate resistance or red tape, you could be a victim of insurance bad faith.
At Hedberg & Boulton, P.C., we understand your frustration and hardships. From our Des Moines, Iowa, offices, our attorneys help victims hold companies accountable for their practices. We also offer free, no-risk consultations.
The term refers to an insurance company’s attempt to renege on its obligations. Here are some examples:
When an insurer engages in bad faith, policyholders may be entitled to receive compensation for any resulting damages they experience.
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Many individuals have questions about bad faith practices by insurance entities. Below are some questions with helpful answers.
Insurance bad faith is essentially when the insurance company owes an obligation to you and tries to get around it. They may do this by denying valid claims or creating unreasonable delays in hopes you will drop the claim. They may provide lowball offers or fail to properly investigate the claim. They may use outright deception, misrepresenting the policy. Not all claims must be approved, but insurance companies cannot operate in bad faith.
The most important step to take is to start a bad-faith lawsuit. You can sue the insurance company to get the compensation you deserve. It can help to work with an experienced legal team at this time.
In general, insurance companies have a duty to act in good faith. This does not mean approving every claim, but they do have to approach claim determinations correctly. For instance, they must investigate the claim, settlement costs to provide a reasonable settlement. The insurance policy you signed is a legal contract, binding all parties to its specified terms and conditions.
Damages could include compensation for actual financial losses, attorney fees, court costs, emotional distress, interest on the withheld payout and even statutory penalties. Furthermore, the court may decide to award punitive damages if the insurance company engaged in misconduct – these are meant to serve as punishment for insurer bad faith practices.