Bad faith insurance refers to a breach of a contact signed with an insurance company and the insurer’s attempt to avoid its obligations by either refusing to pay a policyholder’s legitimate claim or to investigate and process a policyholder’s claim within a reasonable period of time. Avrek Law Firm’s personal injury lawyers have more than 50 years of combined experience standing up for the rights of the insured and their legitimate claims, and holding insurance companies responsible for covering losses.
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What is a Bad Faith Insurance Claim?
When you buy an insurance policy of any kind, you expect to be protected within the limits of the policy. Insurance companies act in bad faith when they misrepresent an insurance policy’s language to the policyholder to avoid paying a legitimate claim. Additionally, when policy limitations and exclusions aren’t disclosed to the policyholder prior to a policy purchase, or when unreasonable demands are made on the policyholder to prove a covered loss, the insurance company is acting in bad faith.
Just because an insurance company denies, underpays or delays processing a claim, it doesn’t automatically mean they are acting in bad faith. It could be determined there was only a breach of contract. If so, they would have to pay the fair value of the claim. For a bad faith claim to prevail, it must be proven the insurance company was unreasonable in its denial or underpayment or took longer than necessary to investigate or handle the claim.
Legal Help from a Personal Injury Attorney
When it is proven that an insurance company has acted in bad faith, the recoverable compensation could be substantial. This could include the actual amount of the damages from the claim plus additional related costs that were incurred due to the denial, attorney fees and punitive damages.
Anyone who has experienced bad faith from any type of insurance policy should consult with a practiced attorney to be fully and quickly compensated. Avrek Law Firm’s auto accident attorneys take the time to investigate your claim and fight to receive the maximum compensation you deserve.
If you have been hurt in an accident and are experiencing an unfair battle with the insurance companies involved, you need to speak to our knowledgeable personal injury attorneys today about your rights. Call our office or fill out the online form to schedule your free consultation today!