What Is A Bad Faith Insurance Claim And How Do I Fight It?
Insurance companies legally have an implied duty to act in good faith and deal with their customers fairly. If your insurance company fails to act in good faith when it is handling your insurance claim, you may have grounds for a bad faith insurance lawsuit. Find out what an insurance company acting in bad faith means and how to protect yourself.
Examples of Insurance Companies Acting in Bad Faith
You may have a bad faith insurance case if:
The insurance company undervalued or denied your claim after failing to properly investigate.
The insurer made a settlement offer that would pay only a portion of your insurance claim or is otherwise lower than the appropriate amount.
Action was not taken on your claim within a reasonable time.
They denied your claim without giving a satisfactory reason.
The insurance wrongfully excluded coverage or threatened to do so to minimize the value of your claim
In South Carolina, the burden of proof is on the claimant to demonstrate that an insurance company acted in bad faith.
What Are My Rights If My Insurer Acts in Bad Faith?
Your policy is a contract between you and the insurance company. When your insurance company breaks a contract, you may be eligible to file a lawsuit to pursue compensation for breach of that contract and for breach of the implied duty of good faith. State law also provides the opportunity to recover consequential damages, including attorney fees and punitive damages, when it is proven that an insurance company acted in bad faith.
What Do I Need to Prove a Bad Faith Insurance Claim?
Proving a bad faith insurance claim requires you to establish three things:
The existence of a mutually binding insurance contract/policy;
The refusal by the insurer to pay benefits due under the contract/policy resulting from the insurer’s bad faith or unreasonable action in breach of an implied covenant of good faith and fair dealing arising on the contract; and
Damages as a result.
How Do I File a Bad Faith Insurance Claim?
Review Your Insurance Contract and Gather Relevant Evidence.
Before you file a bad faith insurance claim, carefully review the specific details of your insurance contract. You should keep detailed records of all actions relating to your claim, including the date you initiated the claim and the date it was denied. Communicate with the insurance company in writing and save everything.
Appeal the Denial.
Following a claim denial, you can request the insurer to reevaluate the claim. Sometimes insurance companies commit errors, such as miscalculations, and a simple internal review may uncover a mistake. This eliminates the need to escalate matters further if the insurer identifies the inaccuracy that led to the denial.
Talk to a Bad Faith Insurance Attorney.
A bad faith insurance attorney will review your claim and policy benefits to determine if you have a legitimate claim. The attorney can then advocate for you in court to help ensure your insurance company covers the benefits that you are paying them for.
How HHP Law Group Attorneys Can Help You
Insurance companies typically have teams of attorneys representing them. They know how to fight lawsuits and avoid paying claims that are rightfully owed under the terms of insurance policies.
When your financial security is on the line, you want a bad faith insurance attorney on your side who knows how to beat these companies at their own game.
Our bad faith insurance attorneys understand how insurers operate. We can help you establish the evidence you need to prove an insurance company breached its covenant of good faith and fair dealing. If you feel you have grounds for a bad faith insurance claim, contact HHP Law Group for a free consultation.