After being involved in an accident and sustaining an injury, it is reasonable to expect the insurance company to investigate your claim fairly, pay you on time, and honor the terms of your policy. If your provider fails to do so, however, they may be acting in “bad faith.” Understanding what to do if an insurance company acts in bad faith is crucial in protecting your legal rights and interests. For more information and to obtain skilled legal advice, reach out to a New York injury lawyer today.
What is Bad Faith?
Bad faith refers to an insurance company acting unfairly or dishonestly when handling a claim. The company may intentionally avoid fulfilling its obligations, often in an attempt to pay out the least amount of money possible and maintain high profits. Insurance companies have a legal duty to act in good faith when dealing with policyholders. Bad faith occurs when an insurer violates its duties.
Examples of bad faith insurance might include:
- Denying a valid claim without reason
- Unreasonable delays in investigating or paying a claim
- Failure to properly investigate a claim
- Undervaluing a claim
- Refusing to pay a valid claim
- Requesting excessive or unnecessary documentation
- Misrepresenting policy terms
- Making threatening statements
If the insurance company has participated in any of the above behaviors, it is important that you understand how to approach the situation.
What Happens if an Insurance Company Acts in Bad Faith?
It is crucial that you understand what to do if an insurance company acts in bad faith. If this is the case for you, you can file a bad faith claim. First, it is important that you carefully review your insurance policy. Understanding your coverage and any exclusions is important to ensure that your claim is covered and legitimate.
Keep records of all correspondence and relevant information regarding your claim. This can include emails, letters, phone records, documents that have been submitted, and more. It is also important that you communicate in writing, especially if you believe that your claim is being mishandled.
You can file a formal complaint with the New York State Insurance Department, the agency that regulates insurance providers. You may wish to secure the help of an experienced attorney when taking legal action. Include all relevant documentation and communications in your bad faith claim to ensure that there is no missing information.
It is important that you consult a lawyer who specializes in personal injury law and insurance claims. Your lawyer can help assess whether you have a valid claim in the first place, whether your case qualifies as bad faith, and the damages that you may be entitled to.
For more information and legal advice, reach out to a skilled attorney at Mitchell J. Schroeder, P.C. today.
