Do You Know When You Should Speak With Insurance Bad Faith Lawyers?

If you have an insurance policy and you believe that the insurance company has not followed through with their contractual obligations, it is important for you to consult an insurance bad faith lawyer. It is a good idea to remember that insurance laws clearly define what can or cannot be done and an insurance policy is one type of contract. Therefore, it may become necessary to exercise your legal rights and force the other party to do the right thing.   

The Insurance Company Must Follow Professional Standards

One of the most interesting aspects of insurance laws is often the word usage within contracts and what is not there. Obviously, when paying for a policy, you hope to never need it while knowing you are covered if the unexpected occurs. Unfortunately, some insurance companies will deny some claims, often for questionable reasons. 

If you had a policy that was in good standing when you needed to file a claim, the last thing you should have to deal with is the worry over whether or not a valid claim will be approved. Sometimes, the insurance company might not approve or decline a claim for months, as an attempt to get claimants to give up. 

If an insurance company does any of the following, it is time to speak with a bad faith attorney:

  • Refusing, either by act or refusal to act, to settle the case

  • Inadequate procedures to investigate the circumstances of the claim

  • Inappropriate (low) financial settlements 

  • Delayed or non-existent communications about the claim

  • Declining a claim unjustly  

What Can You Sue For?

It may be surprising to learn that if and when it becomes necessary to file a claim with your insurance company, the dollar amount of the claim may not be the only compensation you can ask for. Instead, many states allow you to ask for the dollar amount of the claim in question and any other applicable fees and fines. 

For instance, if the lack of a payment had an adverse impact on your health, home or lifestyle, some areas permit those extra costs to be considered when filing suit. By extension, whether the insurance company realizes the error of their ways and pays your claim or it becomes necessary to proceed to court, it is not unusual to eventually receive a more substantial payment than you would have initially.   

In conclusion, you should be able to trust the company who provides you with insurance. When you realize that the trust is no longer there, it is time to find a trust-worthy, experienced attorney and force the insurance company to adhere to the pertinent rules, guidelines and laws.

To learn more, contact a company like Edward J. Achrem & Associates, Ltd.