Insurance Bad Faith Claims
What is insurance bad faith?
When an insurance company sells a policy to a customer, whether for life
insurance, car insurance, homeowners insurance or any other type of coverage,
the company enters into a fiduciary relationship with the policy holder.
This means that the company is expected and required to act in good faith
at all times in its dealings with the policy holder.
The unfortunate fact is that not all insurance carriers uphold this standard.
Remember: insurance companies are in business to make money, and they
do so by collecting premiums and working tirelessly to minimize the amount
they pay out on claims. There are a number of common tactics which insurance
carriers are known to engage in to achieve this goal.
Common Types of Bad Faith
One of the most common types of insurance bad faith is the wrongful denial
of a claim when the refusal to pay is not based on circumstances that furnish reasonable
justification. This often occurs when the insurance company has failed
to perform an adequate investigation into the claim and has simply rubberstamped
a denial of coverage. Another common example is taking advantage of the
financial vulnerability of the policy holder.
People who buy insurance do so to cover the gaps when they are out of work
or when a major unforeseen expense has arisen, and when they file a claim
they are typically highly anxious to receive payment as soon as possible.
Knowing this, the insurance company will often offer a settlement that
is far smaller than what is fair, in an attempt to pressure the claimant
into accepting the small amount. A similar tactic is to engage in intentional
delays in an attempt to frustrate the claimant into accepting the first
offer as soon as it finally arrives.
Legal Help from a Cincinnati Personal Injury Lawyer
By taking legal action against your insurance company, you could not only
recover the fair value of the underlying claim, but might also stand to
receive monetary damages for the bad faith actions. This can include compensation
for the emotional distress to which you have been subjected, as well as
economic damages for any losses you sustained as a result of the insurance
You might even be able to claim punitive damages, depending on the circumstances
of the case. If you believe that you may have grounds to sue your insurer,
do not hesitate to
contact us at The Moore Law Firm. Our founding attorney has experience working on
the side of the insurance company, a background which gives us an insight
into the tactics they use against their policy holders.
Contact our Cincinnati personal injury lawyers now for a
free consultation to learn more about your legal options.