Bad faith insurance is any matter regarding an insurance claim by an Insured that is wrongfully denied by the Insurer. An insurance company is operating in bad faith if they:
- Fail to thoroughly and expeditiously investigate a claim
- Offer an inadequate settlement for losses suffered by the policy holder
- Delay payment of the settlement for an unreasonable amount of time
- Interpret the policy language in such a manner as to deliberately deny the policy holder compensation for their losses
In some cases, insurance companies simply refuse to honor a claim without a reason. Any action taken by the insurance company that can be considered a breach of contract between the policy holder and the insurance company may be considered bad faith.
What Compensation Am I Eligible For?
In many cases, the plaintiff is eligible for the initial compensation outlined in the insurance claim, as well as consequential damages and extra contractual damages.
Consequential damages would be any out of pocket expenses the plaintiff was required to pay as a result of the inaction of the insurance company, such as fees associated with a vehicle repair. Extra contractual fees are rewarded for emotional or physical pain and suffering resulting from the insurance company’s bad faith. Extra contractual damages are determined based on the particularities of individual cases, and are not guaranteed for all plaintiffs.
If an insurance company has acted egregiously, the court may also reward punitive damages. The purpose of punitive damages is to punish the offending party by exacting additional compensation, in the hopes that such activity by the defendant will cease. Our attorneys can review your case and decide if you’re eligible for compensation.
An experienced lawyer from Kope and Associates can review your claim and determine your eligibility for a case. Often, the mere notification of a potential lawsuit is enough to obtain a fair and just settlement from the insurance company. To schedule a free consultation and case review, please contact Kope and Associates as soon as possible.