Insurance Bad Faith
The business of insurance is highly lucrative and in most instances, consumers are required by law or compelled by lenders to purchase such coverage. The concept behind insurance coverage is a good one. The policy holder pays a premium in exchange for the insurers’ agreement to defend the insured (hire counsel) and indemnify (pay the claim) in the event of a covered claim.
Inherent in the contractual obligation between the insurance company and its own insured is an implied covenant of “good faith and fair dealing.” That is, the carrier is obligated to provide the coverage described in the policy, act fairly and in good faith toward its policy holder, and not subordinate the insured’s interests to those of the insurer.
When an insurance company unfairly denies the payment of legitimate claims; refuses to defend (hire counsel) to protect its insured when a lawsuit is filed; engages in unreasonable delay in payment of a valid claim; fails to properly investigate or unreasonably ignores pertinent information; or “low-balls” or underpays insurance claims without valid reasons, it may be acting in “bad faith” and can be held accountable for this conduct.
DeMeo DeMeo & West is experienced in the prosecution of bad faith claims by insureds against their own insurers which arise from the carriers’ bad faith tactics. While denial of claims has become common and not every instance is actionable, when an insurer oversteps its bounds and violates the implied covenant of good faith and fair dealing, that insurer may be taken to task for its conduct.
In some instances, where the insurer violates its contract with the insured and/or violates the law by committing bad faith, it can be held liable for more than what was originally owed contractually under the policy. This may include damages caused by the delay or denial of benefits, economic and non-economic damages, and in certain cases, attorneys’ fees.
If the carrier has acted in an outrageous or malicious manner, or has intentionally tried to harm the insured by its acts, punitive damages may also be recovered.
If you have been unfairly denied benefits under a policy of insurance which you paid for, contact DeMeo DeMeo & West to evaluate any potential recourse that might be available to you.
