Bad Faith Insurance Litigation

Bad faith insurance litigation is an option for people who have suffered losses due to an insurance company's bad faith
practice(s). Many types of insurance have been the subject of bad faith insurance litigation; for example:

  • life insurance
  • disability insurance
  • auto/boat/RV insurance
  • business insurance
  • health insurance
  • property insurance

Settlement or Litigation for a Verdict

In many cases, a plaintiffs' law firm can work out a settlement with an insurance company to resolve a policyholder's problems. In other cases, bad faith insurance litigation is necessary — often because the insurance company denies any wrongdoing and is hoping that the threat of litigation will make a policyholder back down.

The Recent Increase in Bad Faith Insurance Litigation

In recent years, bad faith insurance litigation has increased on par with the proliferation of bad faith insurance dealings committed by seemingly reputable insurance companies. Several large insurance companies are notorious for denying policyholders' benefits sought through legitimate claims.

Examples of Insurance Bad Faith

There are many ways that an insurer will act in bad faith in order to deny legitimate policyholder claims. Insurers:

  • may demand exhaustive and unreasonable documentation from a policyholder
  • decline to conduct a thorough investigation of a claim
  • claim to have lost or never received pertinent information
  • declare that information was not received in a timely manner
  • assert that a valid claim is not covered, or
  • provide any number of other excuses to wrongfully deny or obstruct a legitimate claim
  • pay only partial benefits rather than full benefits

Breach of Contract

Insurance companies who fail to act in good faith are in breach of contract, an offense that gives actionable cause for bad faith insurance litigation. When an insurance company has acted in bad faith, the insured has the legal right to seek compensation for their damages through bad faith insurance litigation.

Bad Faith Insurance Litigation: A Civil Lawsuit

Bad faith insurance litigation is pursued in the civil legal system. In a civil lawsuit, the wronged policyholder has the burden of proving that the insurer acted in bad faith. When the legal decision rendered through bad faith insurance litigation favors the plaintiff, compensatory and/or punitive damages may be awarded.

Punitive Damages to Deter Future Wrongdoing

Punitive damages, ordered though bad faith insurance litigation, are intended to punish the defendant for their intentional or malicious wrongdoing. Punitive damages are also supposed to deter the defendant and others from committing similar offenses in the future. In practice, this is not always the case. Insurance companies are often multi-billion dollar corporations.

Consult an Attorney about Bad Faith Insurance Litigation

Bad faith insurance litigation often involves challenging major companies who have committed unfair and unlawful actions. Victims of bad faith insurance practices will benefit from the services of a qualified and experienced attorney who can protect and maximize their legal interests.

If you would like more information on the elements of bad faith, please contact us to confer with a bad faith lawyer.

Be assured your matters will be in experienced & caring hands.