When you file a claim against an insurance provider, you expect the claim to be handled fairly. Sadly, this isn’t always the case. Bad faith tactics are common, especially when an insurer knows you don’t have an attorney to defend you.
Understanding bad faith so you can recognize the signs and be prepared is crucial for protecting your rights and ensuring you receive the compensation you deserve. This blog discusses the signs to be aware of, the impact of bad faith, and how a personal injury attorney can defend your rights and prevent these practices.
What is Insurance Bad Faith?
Insurance bad faith is the deliberate avoidance of or failure of a provider to fulfill its duty toward claimants and policyholders. It goes beyond a misunderstanding or honest mistake and can be done in many ways without paying.
How to Recognize Insurance Bad Faith
There are several warning signs to look out for if an insurance provider implements bad faith practices. When you communicate with the company, take note of the following:
- A lack of communication can include avoiding phone calls, not responding to emails, and canceling meetings.
- Denying claims without cause: If a claim is denied, the insurance company must provide a reasonable explanation
- Low offers: Insurers acting in bad faith may offer low settlement offers and pressure you to accept them without speaking to an attorney
- Unreasonable demands: An insurance provider asking for documentation unrelated to the case may be stalling
- Delays: Investigations or inquiries take longer than they should and have no valid explanation.
How Bad Faith Practices Can Affect You
Bad faith insurance tactics can leave you to deal with financial burdens alone. Medical expenses, lost income, and vehicle repair bills can add up rapidly, and if you don’t receive compensation quickly, you can end up in debt.
A significant side effect of nefarious practices is delayed recovery. If you’ve been severely injured, bad faith may prevent you from receiving essential treatments or force you to settle for cheaper treatment options that may not be as safe or effective.
The psychological impact of these tactics can affect every part of your life and prevent you from earning an income, maintaining relationships, and pursuing hobbies. Losing these vital aspects of daily life can cause immense anxiety and stress that can aggravate your existing injuries and interfere with the healing process.
Legal Recourse for Insurance Bad Faith
Fortunately, there are ways that the law protects individuals affected by bad faith tactics. Depending on the laws in your state, an unscrupulous insurer may have to pay further damages in addition to the original claim. Bad faith claim damages can include additional compensation for lost wages and medical expenses.
The insurer guilty of bad faith practices can also be ordered to pay non-economic damages for psychological distress, which can be substantial if the distress worsens the claimant or policyholder’s injuries and causes severe financial insecurity.
If the bad faith tactics have been particularly nefarious, insurers may have to pay punitive damages. Punitive damages, intended as a significant punishment, can be several times the amount of the other damages paid to deter a repeat of the behavior in the future.
In some states, the insurer who employed bad faith tactics can also cover your attorney’s fees. This practice is intended to help the claimant or policyholder recuperate expensive litigation costs.
How to Protect Yourself From Bad Faith Practices
Maintaining extensive records is vital so insurers don’t take advantage of you. You must keep every physical piece of paper you receive related to the case, and it can be helpful to scan them so you have a digital copy as well.
It is also essential to document every conversation you have with the insurance provider, including emails, letters, texts, etc. You must continue to communicate with the insurer even if they never respond.
A record of all your attempts to connect can be crucial when filing a claim. In your communications, you should mention the case details, repeat your last communication, and clearly state how many days it has been since you spoke to a representative.
Remember that each state has individual laws regarding insurance bad faith, so hiring an experienced attorney is the best way to protect yourself.
The Role of an Attorney in Combatting Bad Faith
Starting a personal injury case with a lawyer serves many purposes. They will play many roles throughout your case, including guide and advocate. A lawyer will also use their expertise to protect you against bad faith practices. Having a lawyer will clearly show insurers that you are fully prepared to defend your rights.
Your lawyer will act on your behalf in several otherwise stressful and complicated scenarios, such as:
- Determine the appropriate compensation
- Communicate with insurers
- Explain complex legal jargon and standards
- Collect evidence and conduct investigations
- Recognize signs of bad faith and quash them immediately
- Support and reassure you throughout the process
- Use their significant resources and connections
- Secure a fair settlement that fairly compensates you
- Take the case to trial if a settlement can’t be reached
Empower Yourself Against Insurance Bad Faith
An insurance provider’s attempt to engage in bad faith practices can profoundly impact your recovery and finances. When an insurer is preoccupied with its bottom line, you can hire an attorney to navigate the complex legal process carefully.
If you suspect an insurer is acting in bad faith, seek legal counsel immediately to protect your interests and secure the compensation you deserve. You are not alone in this; our experienced attorneys know how to protect you against insurance bad faith. Contact HHJ Trial Attorneys to support you today.
