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.