Bad Faith Lawsuit or Claim | Sweet Law Group


Insurance companies owe a duty of ‘good faith’ to its claimants. However, poor investigation, delays in claims management, refusing to make reasonable settlement offers, and misrepresentations of the insurance policy are examples of bad faith. When situations like these arise, a person is well within their right to file a bad faith lawsuit.
 
Once you have proven the elements of a bad faith claim, judgments allow one to be compensated a larger amount that the original face value of the underlined policy.
 
Continue reading to learn more about how to file and prove a bad faith lawsuit.
 

Top 6 Elements of Bad Faith

 
An insurance company denying or delaying compensation due to a reasonable dispute such as the existence of coverage or the amount coverage available, generally isn’t considered bad faith. The elements of a bad faith lawsuit vary depending the state where you reside. In general, a victim must prove an insurance company:

  • Misrepresented relevant facts or insurance policy provisions;
  • Failed to acknowledge a claim and to act promptly after receiving a claim;
  • Failed to maintain adequate investigative procedures;
  • Failed to either approve or deny claims within a reasonable time after the claimant has submitted proof of loss;
  • Failed to provide a reasonable explanation or reasons for denying the claim;
  • Failed to respond to a settlement demand.

 
In other words, the insurance company must either have known that their actions were unreasonable or reckless, causing additional damages to the claimant.
 

Damages Awarded

 
An insurance company that is found to have acted in bad faith may be liable for monetary compensation far in excess of the policy limits that were originally available. The types of damages you may be awarded in a bad faith lawsuit vary from state to state. These damages could include:

  • Judgment in excess of the policy limits;
  • General damages;
  • Pain and suffering;
  • Emotional distress;
  • Economic loss;
  • Punitive damages;
  • Attorney fees;
  • Others.

 

Hire a Personal Injury Attorney For Your Bad Faith Lawsuit

 
It is important to understand that pursuing a bad faith lawsuit against an insurance company is a very complicated and specialized area of the law. For this reason, consult with the experienced attorneys at the Sweet Law Group.
 
With over 40 years of legal experience, we know what it takes to get you the justice and compensation you deserve. Call our office for a free consolation to speak to an attorney who will explain your legal options and make sure your rights are protected every step of the way. Call today at (800) 203-3061.

 

Related Posts

car accident legal advice

Hit and Run Car Accident? What You Need to Do Right Now

More than one hit-and-run accident happens every minute in the United States. Being the victim of a hit-and-run crash is extremely stressful because you often don’t know who is responsible for your damages. Even if you have insurance, it can be tricky to get them to cover the accident when there’s no other driver. Fortunately, […]

filing lawsuits

Time Limits on Filing Lawsuits: How Soon Do You Need to File After an Accident or Injury?

Every year, thousands of people are hurt in accidents that are not their fault. From car accidents to medical malpractice to defective products, personal injuries happen every day. Depending on the severity of your injuries, you may have extensive medical expenses, lost wages, or even permanent disability.  If the insurance company of the responsible party […]

vehicle insurance

In a Crash With No Vehicle Insurance? What You Need to Do Immediately

California ranks 10th in the nation when it comes to the number of uninsured drivers on the road. In fact, 16.6 percent of drivers in California don’t have vehicle insurance. If you’re in an accident and don’t have insurance, you might be afraid and have no idea what to do next. Don’t panic! Keep reading […]

hiring a lawyer

How to Find the Best Lawyer, and What Questions to Ask Before Hiring a Lawyer

According to the American Bar Association, there are well over 1.3 million lawyers in the US.  If you’re looking for a lawyer, it can be hard to know where to start.  However, it’s essential for the success of your suit that you find one who is equipped to handle your specific case, who has experience, the right specialization, and […]

Help Is Here

We have answers. Tell us about your situation.

Call (800) 674-7854 or request a callback below
  • This field is for validation purposes and should be left unchanged.

Police Report Request Form

Police Report Request

"*" indicates required fields

Name*
Sweet Lawyers has my permission to help provide a free police report.*
This field is for validation purposes and should be left unchanged.