How To Prove an Insurance Bad Faith Claim in Court
Many people carry insurance for the peace of mind that comes with it. Unfortunately, when in a time of need, not all insurance companies handle claims fairly. Some deny claims, while others offer settlements far below what a policyholder deserves. In some instances, you might find insurance delaying payments for months. When this happens, it can leave a policyholder frustrated amid financial hardships. If this is happening to you, your insurer may be acting in bad faith, and you may be able to bring a bad-faith insurance claim. However, knowing the evidence you need to prove your case in court is essential, and this blog helps you with that! Read on to learn more.
Common Examples of Bad Faith Practices by Insurers
Insurance companies must handle claims fairly and in good faith. When they fail to do so, their actions may be considered bad faith. Bad-faith practices may include:
- Misrepresenting policy provisions
- Ignoring or delaying responses to claims
- Failing to properly investigate a claim before making a decision
- Taking an unreasonable time to approve or deny a claim
- Denying a claim without providing valid reasons
How To Prove Insurance Bad Faith in Court
To hold insurance companies accountable for their bad-faith practices, you need solid evidence. Some of the most effective forms of proof include:
- Expert Testimony on Insurance Practices
Testimony from an insurance expert can be invaluable in your case. An expert in industry standards can explain how the insurance should have handled your claim. They can help clarify instances where the insurance company acted in bad faith, supporting your case significantly.
- Your Insurance Policy
If your insurer fails to follow the terms outlined in your policy, you can use it as proof of bad faith. Having a lawyer review your policy to identify any possible violations is wise.
- Correspondence With the Insurance Adjuster
Your communication with the insurance company is just as crucial. If an adjuster contradicts themselves, refuses to answer questions, or provides misleading information, this can be evidence of bad faith, so keep all emails, letters, and phone call records with the company.
- Internal Company Policies
Sometimes, bad faith is part of an insurance company’s standard policies. A lawyer can help you obtain documents such as company policies, training materials, and internal procedures that may show if the insurer encourages adjusters to deny or underpay claims. These can strengthen your case.
- The Insurance Company’s Claim File
Every insurance company has a claim file that indicates their decisions, internal discussions, and notes about a specific claim. These files often include details like the insurer’s impressions of your case, the extent to which the investigation has been conducted, and any correspondence between you and the provider. Your attorney can review the information to establish whether the insurer acted in bad faith by failing to investigate properly or making decisions without justification.
Damages You Can Claim in a Bad Faith Claim
If you successfully prove the insurance company acted in bad faith, you may be entitled to the following damages:
- The full amount you were supposed to receive (either in the form of an underlying judgment or policy benefits)
- Attorney’s fees and costs
- Punitive damages if the insurer’s actions were particularly reckless.
Let Our Tampa Insurance Bad Faith Lawyer Help
If you suspect your insurance company is acting in bad faith, contact our experienced Tampa insurance bad faith lawyer at Gunn Law Group P.A. today to fight for the compensation you deserve.
