Have you recently filed an insurance claim only to be frustrated by an unfair denial? Does it seem like your insurance adjuster is never available when you need to speak with them? If your insurance company is neglecting or refusing to honor the terms of your policy agreement, you may have grounds for a bad faith insurance claim.
Georgia law requires all insurance providers to act in “good faith” when working with policyholders and reviewing legitimate claims. Insurance “bad faith” occurs when insurance companies refuse to cover valid claims, even when policyholders are current on their payments and should be eligible for coverage.
When an insurance company acts in bad faith, policyholders can often seek compensation by filing bad faith insurance claims. The compensation available in a bad faith insurance claim can pay for the coverage policyholders should have received in the first place and cover additional costs or losses a policyholder incurs due to bad faith insurance practices.
If you suspect your insurance provider has not been acting in good faith, the Georgia attorneys of Sherrod & Bernard, P.C., can evaluate your case at no charge to determine whether you have grounds for a bad faith insurance claim. Contact us today to learn more about your legal options in a free initial consultation.
What Are the Signs of a Bad Faith Claim?
Any time you sign an insurance contract or policy agreement, there is an implied understanding that your insurance provider will act in good faith. When insurance companies act in good faith, policyholders should expect the following:
- Timely responses – You are entitled to receive a determination for your claim, whether the insurance company decides to approve or deny it, within a reasonable timeframe. Insurance companies should not refuse to respond to policyholder inquiries or take excessively long to resolve valid claims.
- Clear explanations – If an insurance company denies all or part of your claim, you are entitled to a clear explanation outlining the denial decision and how that decision is based on the terms of your policy.
- Honest efforts – Insurance companies have an obligation to make honest efforts to help you resolve your claim and reach a fair settlement.
When you pay for an insurance policy, you have a right to expect the financial and legal protection you have paid for with your premiums. Unfortunately, insurance companies commonly attempt to protect their profits rather than their policyholders by engaging in bad faith behavior, such as:
- Intentionally providing bad recommendations or advice to policyholders
- Refusing to cover claims that are legitimate and valid under the insured’s policy
- Neglecting or refusing to investigate the circumstances surrounding a claim
- Delaying or refusing to pay a settlement or judgment for no valid reason
- Purposely undervaluing the property or assets involved in a legitimate claim
- Minimizing the value of a claim without a clear or valid reason
- Neglecting or refusing to respond to policyholder claims or inquiries promptly
- Refusing to provide prompt or reasonable explanations for claim denials
- Misrepresenting the terms of a policy agreement or a denial of coverage
- Refusing to defend policyholders from lawsuits despite agreeing to do so
- Altering a policy agreement without the policyholder’s knowledge or approval
- Rescinding or canceling an insurance policy to avoid covering a valid claim
What Are the Types of Bad Faith Insurance Claims?
There are two key “types” of bad faith insurance claims, which mainly differ based on the type of coverage available under the policy agreement. These two types include:
- First-party bad faith insurance claims – First-party insurance policies are designed to pay for losses incurred by the policyholder. For instance, a first-party auto insurance policy would cover your own medical expenses if you were injured in a car wreck. In a first-party bad faith insurance claim, the insurance company refuses to cover a valid claim for some loss that you sustained.
- Third-party bad faith insurance claims – Third-party insurance policies, also known as “liability” insurance policies, are designed to pay for other people’s losses when you are at fault in some way. For instance, a third-party auto insurance policy would cover another driver’s medical expenses if they were injured in a car wreck you caused. A third-party bad faith insurance claim could result if the insurance company refuses to defend, indemnify, or settle another party’s claim to protect you from liability.
What Can I Do If My Insurance Company Acts in Bad Faith?
If you believe your insurance company has acted in bad faith, the first thing you should do is take a moment to step back and evaluate your case impartially. After all, if you are already dealing with the stressful aftermath of an accident, injury, or some other loss, it’s easy to allow frustration to cloud your judgment.
Many insurance companies acting in good faith take a long time to settle claims simply because the investigation and review processes are inherently time-consuming. And just because you don’t get the settlement offer you were hoping for in the timeline you were expecting, it doesn’t automatically mean your insurer is acting in bad faith.
If you’re still reasonably certain you have grounds for a bad faith insurance claim, you can begin taking legal action by consulting a knowledgeable lawyer for guidance. During your initial consultation, you’ll want to have all your claim-related documentation and correspondence on hand to review with the attorney. A Georgia personal injury lawyer can help you evaluate your situation and determine whether they can establish a strong foundation for your claim.
Contact a Bad Faith Insurance Claim Lawyer Today
Any time you file an insurance claim, it’s because you’ve already suffered some type of loss, injury, or another unfortunate incident. If you have paid your premiums and held up your end of the insurance policy agreement, you deserve to have your claim settled fairly and promptly.
Bad faith behavior on the part of the insurance company you’ve paid to provide coverage to you is an actionable wrong. Such behavior should be grounds for a bad faith insurance claim. With a successful claim, you could recover the compensation you should have received initially and additional money for incidental losses you suffered due to a bad faith denial.
If you have questions about filing a bad faith insurance claim in Georgia, don’t hesitate to get in touch with the team at Sherrod & Bernard, P.C. We can answer your questions and review your case for free when you contact us for an initial strategy session.
