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What Is Bad Faith Insurance?

by | Apr 16, 2024 | Injuries | 0 comments

A person usually files an insurance claim after a terrible or catastrophic event has occurred in their life. The insurance company is allowed to deny a claim if the claim does not meet the requirements of the agreed-upon coverage; however, insurance companies can act in bad faith if they do not pay out rightful claims that fall under the insured’s coverage. Many insurance companies employ bad faith insurance tactics in order to skirt liability and avoid paying for a claim.

If you believe that your insurance company has acted in bad faith, you should seek legal representation. Luckily, there is a legal remedy to fight against bad faith insurance. You need an experienced attorney who may be able to help you recover the maximum amount of damages you are owed. Dominguez Law and our legal team are prepared to protect your rights when a reasonable settlement cannot be reached. We have skilfully handled many bad faith insurance claims on behalf of our clients.

Bad Faith Insurance: What Is It?

Bad faith insurance can occur within any part of the insurance industry. Health insurance, auto insurance, homeowners’ insurance, and life insurance are examples of the types of policies in which bad faith tactics may be employed. Bad faith insurance essentially occurs when an insurance company does not pay out a rightful claim that falls under the insured’s agreed-upon coverage contained within the applicable insurance policy. In order to avoid liability and payment, insurance companies may use the following tactics:

  • Denying a claim and not giving a legitimate reason for the denial
  • Partial payment of a claim
  • Failure to respond to a claim in a timely manner
  • Offering a lowball settlement
  • Failure to disclose the insured’s coverage
  • Failure to pay out a claim when liability is clearly proven

If your insurance company has employed any of the above tactics against you in order to avoid liability for your claim, you should consult with an experienced attorney. Having proper legal representation is crucial to increase your chances of recovering damages from the insurance company, and a skilled lawyer will make navigating the legal system as smooth as possible for you.

Bringing a Bad Faith Insurance Claim Against the Responsible Insurance Company

When you bring a lawsuit against your insurance company for bad faith, you must prove that the insurance company knew it was liable for coverage under your policy, had no legitimate basis to deny coverage, and acted with egregious and dishonest conduct. You should keep a record of your interactions and correspondence with the insurance company throughout your claim process because such information might become evidence in your case. An experienced attorney can gather the relevant evidence to create a strong case against the insurance company and help you prove the insurance company acted in bad faith.

In a bad faith insurance case, the plaintiff can recover compensatory damages and potentially even punitive damages. Compensatory damages represent the damages done to the plaintiff. These damages can include compensation under the insurance claim in question, attorney’s fees, any economic losses that resulted from the non-payment of the insurance claim in question, and emotional distress.

Schedule Your Free Consultation With Dominguez Law Today to Discuss Your Bad Faith Insurance Case

Insurance companies are supposed to act with good faith and fair dealing when they enter into an agreement to cover the insured party, no matter the type of insurance. Claims that follow the insurance policy’s terms should be honored and paid out accordingly, but some insurance companies act in bad faith when they try to avoid paying out legitimate claims. Bad faith insurance should not go unpunished – let Dominguez Law represent you in your case against your insurance company.

The compassionate and aggressive lawyers with Dominguez Law are ready to fight for you and litigate your case. To schedule your free consultation, you can call (505) 850-5854 or fill out our contact form today. We also speak Spanish.