What Is An Insurance Bad Faith Lawsuit?

Insurance Overview

When you buy insurance you buy it with the expectation that when something happens you are covered. You assume, for example, that if you are rear ended your auto insurance carrier will cover your repair bill. Sometimes, however, your insurance company will look for a loophole in your policy and deny you coverage. When this happens it is called insurance bad faith.

Bad Faith Explained

Your insurer acts with bad faith when it wrongfully refuses to honor its obligations to you. This could mean that it refuses to cover the cost of your car repair. It can also mean that your insurer refused to appoint an attorney to defend you in the ensuing legal action. If your insurer did this to you it is called acting in bad faith. Retaining an experienced insurance bad faith lawyer is the best way to prevent and deal with this kind of behavior from your insurance company.

Litigating An Insurance Bad Faith Case

An insurance bad faith case begins with an event that activates your insurance coverage. Maybe this happened because someone bumped into your parked car. It can also happen if someone slips in your bathtub. Regardless of the type of insurance, an event must have occurred that triggered your coverage protections. Once your policy is activated, your insurer should cover you up to the limits of your policy. If your insurer refuses, then the bad faith insurance case begins.

What Will Your Attorney Do?

Your attorney must carefully go over the underlying facts of the case and compare them against the terms in your insurance policy. Your attorney must prove that the insurance event is covered by your policy. Your attorney will also want to make sure that your coverage did not lapse. Coverage can lapse for many different reasons but usually it is because you failed to pay your premiums. Then, your attorney must prove that your insurer should have covered your expenses and refused.

After your attorney establishes that your insurer is liable he will determine the compensation you are owed. Usually this will include any expenses incurred while you dealt the underlying event along with your litigation costs.

Get Legal Help

Your insurance company is a huge corporation with vast resources at its disposal that can trap you in a maze of bureaucracy. Hiring a competent civil litigator is the best way to get the compensation that you are owed and that you deserve. Protect your rights, hire an experienced insurance bad faith lawyer right away!