Bad Faith Insurance Related to Personal Injury Claim
Many people throughout the United States experience unexpected injuries in all types of situations, from workplace accidents to traffic collisions and defective product malfunctions. In many of these situations, the victim’s first step toward recovery is filing a claim for insurance coverage. For example, if you sustain a personal injury in a car accident that someone else caused, you have options. You can file a claim against their auto insurance policy to cover your damages.
Unfortunately, while the US’s insurance claims processes should be straightforward, honest procedures, not all insurance companies are as easy to work with as others. Some insurance carriers are notorious for fighting legitimate claims, offering lowball settlements, and using other unsavory tactics to limit the amount they have to pay in claim settlements as much as possible.
Insurance companies operate for profit. They make money by selling promises for coverage, but they have a legal duty to handle all claims in good faith. If you recently filed a claim for insurance coverage and believe the insurance company did not handle your claim properly, contact a Denver, CO insurance bad faith attorney as soon as possible.
What Does Bad Faith Mean in Insurance?
When an individual purchases any type of insurance coverage, they typically pay a monthly premium rate in exchange for the ability to claim coverage up to a certain amount under certain conditions. Insurance companies make money by collecting premium payments from policyholders; they lose money when forced to pay out on claims. Federal and state laws allow insurance companies to investigate all claims to ensure they are valid before paying out on them. Federal and state laws also require insurance companies to uphold strict policies regarding processing insurance claims in good faith.
“Insurance bad faith” refers to any situation in which an insurance company’s employee takes unethical action against a claimant to avoid paying out on the claim. Insurance bad faith takes many forms, and it’s good to know some of the most common examples:
- Insurance companies must process claims in a timely manner. Any unnecessary or intentional delays in the confirmation or denial of a claim can amount to bad faith.
- Insurance carriers must fully investigate claims. Denying a claim without any proper investigation is a clear example of insurance bad faith.
- Some insurance claim adjusters will attempt to coerce a claimant into accepting a lower settlement amount than the insurer is liable to pay.
- Any use of unlawful or deceitful investigative technique is a bad faith practice. For example, a claims adjuster lying about a claimant’s ability to claim coverage and denying their claim under false pretenses would be a clear example of bad faith.
- An insurance company may make unreasonable demands for documentation and supplemental materials a claimant must submit with their claim to compel the claimant to drop the issue or accept a lowball settlement offer.
- Some insurance bad faith is quite brazen, such as falsifying information, purposefully misinterpreting claimant statements, or outright lying to a claimant about their ability to claim coverage.
This list is not an exhaustive one. Insurance companies must process and handle all claims for coverage honestly. Still, many insurance companies engage in unethical practices to drive their profits. Those victimized by these practices do not know what they can do in the face of large insurance companies with powerful in-house legal teams.
While insurance companies have the right to ensure claims are legitimate, it is fairly easy for many insurance companies to abuse their positions and engage in bad faith practices simply to preserve their bottom lines.
Why Should I Hire a Denver, CO Insurance Bad Faith Lawyer?
Insurance bad faith often appears at the worst possible times, especially for victims of personal injuries. If you or a loved one sustained an injury in a car accident or other situation that prompted a claim for insurance coverage, you need legal help. You always face the potential risk of meeting with undue or unethical resistance from the insurance carrier. A Denver, CO insurance bad faith attorney can help a person in this position determine the best possible option for handling the situation and securing the insurance coverage they rightfully deserve.
A Denver, CO insurance bad faith attorney will carefully review all of their client’s interactions with the insurance company in question as well as the policy in question. It is not uncommon for insurance company agents to target claimants who attempt to file claims on their own without legal counsel and essentially bully them into accepting lowball settlements. A person recovering from an injury and already facing financial struggles will feel trapped and helpless in this situation. Unfortunately, these circumstances can compel some claimants to accept settlement offers much lower than they rightfully deserve.
Your Denver, CO insurance bad faith lawyer can add strength to your insurance claim. Should you choose to hire an attorney to assist in drafting your initial claim for coverage, this alone can be enough to deter any potential bad faith practices you might have encountered. However, if you have already filed a claim and encountered what you believe to be bad faith practices on part of the insurance carrier, call our firm. It is vital to consult an attorney about your legal options immediately.
Get an Attorney to Take Legal Action for Insurance Bad Faith
If you believe you or a loved one have been victimized by insurance bad faith practices, seek legal guidance from one of our reliable Denver, CO bad faith insurance lawyers as soon as possible. Your attorney can review all of the materials related to your claim and your interactions with the insurance company to determine whether bad faith practices have occurred and what you can do about them.
If you are ready to discuss your legal options with an experienced and compassionate Denver, CO insurance bad faith attorney, the Law Firm of Jeremy Rosenthal is available to assist you. Contact us today to learn more about your legal options in the face of insurance bad faith practices and what to expect from taking legal action over a bad faith insurance claim.