When dealing with personal injury claims, insurance companies are required to act in good faith. This means they must handle claims promptly, thoroughly investigate the circumstances surrounding the claim, and make fair settlement offers based on the facts of the case. However, there are instances where insurance companies fail to uphold these duties, leading to what is known as insurance bad faith. In such cases, a personal injury attorney can file a lawsuit against the insurer for their failure to act in good faith.
Personal injury attorneys approach insurance bad faith lawsuits by first establishing that an insurance contract exists between their client and the insurer. They then seek to prove that the insurer failed to fulfill its obligations under this contract without any reasonable justification.
One common way insurers act in bad faith is by denying a claim without conducting a thorough investigation. When approaching such cases, personal injury attorneys will gather all relevant evidence demonstrating that an adequate investigation was not carried out. This may involve subpoenaing internal documents from the insurer or deposing employees involved in handling the claim.
Another common form of bad faith involves unreasonably delaying payment on a valid claim. Personal injury attorneys will review all correspondence between their client and the insurer to establish whether any undue delays occurred. The law typically requires insurers to acknowledge receipt of claims within certain timeframes and make decisions on those claims within reasonable periods.
In some situations, insurers may also be found guilty of bad faith if they fail to defend or indemnify their policyholder against third-party claims when it’s mandated by their policy terms. Personal injury attorneys will examine policy language carefully in these instances and argue that failure to provide defense or indemnification constitutes bad faith.
Once evidence of bad faith has been established, personal injury attorneys aim for compensation beyond what would have been paid out under normal circumstances – often referred as punitive damages – which are designed not only compensate victims but also deter similar conduct from happening again in future.
Moreover, many states have laws allowing plaintiffs who win bad faith lawsuits to recover attorney fees and litigation costs from the insurance company. This can be a significant factor in making these types of lawsuits financially viable for victims.
In conclusion, personal injury attorneys approach insurance bad faith lawsuits by meticulously gathering evidence, reviewing policy language, and demonstrating that the insurer failed to uphold its obligations. Their ultimate goal is not only to secure fair compensation for their clients but also to hold insurers accountable for their actions, thereby protecting future policyholders from similar treatment.
Munley Law Personal Injury Attorneys
27 N 6th St, Stroudsburg, PA 18360
15703384494
