Law & Legal & Attorney Accidents & personal injury Law

Bad Faith - An Easy to Understand Explanation

When you enter into an insurance contract, sometimes you pay premiums for years and years before you ever need to make a claim.
When you pay these premiums, you do so with the belief that when and if your time of need comes, your insurer will pay you fairly and will provide you with the benefits promised under the policy.
Unfortunately, sometimes an insurance company does not live up to its end of the bargain.
When this occurs, it is time to call an insurance attorney for legal help.
Bad Faith Insurance Claims Insurance policies are actually contracts with your insurance company in which you agree to pay premiums and the insurance company promises that they will cover you for certain events in exchange for the payment of those premiums.
The contract of insurance outlines when an insurer will pay and what your obligations are.
However, the law also imposes another contractual requirement that is not specifically outlined in your insurance policy: the obligation of good faith and fair dealing.
The obligation of good faith is referred to as the covenant of good faith and fair dealing.
It essentially indicates that the insurance company promises to act fairly in paying claims.
When the insurance company does not act in a fair and reasonable manner, they are considered to be engaged in bad faith (BF).
When this occurs, you can bring a BF lawsuit.
What is a Bad Faith Lawsuit? A bad faith lawsuit is a tort or personal injury action.
It is very different in some key ways from a breach of contract claim which would be your only recourse against your insurer if the implied covenant of good faith and fair dealing did not exist.
While a breach of contract case limits your damages to actual provable financial loss, a tort claim for BF provides much broader compensation.
In fact, when you bring a BF cause of action against an insurance company, you may even be entitled to collect punitive damages (compensation intended not to make you whole for actual loss but instead to punish the defendant for willful or egregious wrongdoing).
A bad faith lawsuit, therefore, can result in a significant amount of compensation being awarded to a plaintiff.
When Can You Claim Bad Faith? Of course, you cannot claim your insurance company is acting in BF every single time they do not do what you want.
In order for you to make a bad faith claim, the insurance company must act without reasonable justification in denying claims, failing to pay claims, or failing to pay the amounts provided for in the insurance policy.
In other words, the insurer must somehow unreasonably deny you the insurance coverage you paid for.
An experienced insurance attorney can help you to understand when an insurer acts unfairly or in bad faith.
They can also help you to gather the evidence you need to prove BF so you can recover the compensation you deserve.
Have more questions not covered in this article? Find an attorney specializing in BF claims and contact them for a free consultation.
SHARE
RELATED POSTS on "Law & Legal & Attorney"
Step by Step Guide to Make a Winning Road Traffic Accident Claim
Step by Step Guide to Make a Winning Road Traffic Accident Claim
Three Misunderstandings About Work Accident Compensation Claims
Three Misunderstandings About Work Accident Compensation Claims
Laser Eye and Cataract Surgery
Laser Eye and Cataract Surgery
New York NY Truck Accident Law Firms
New York NY Truck Accident Law Firms
Securities Fraud Lawyer Alert Against Asset Mishaps
Securities Fraud Lawyer Alert Against Asset Mishaps
What Happens When You File An Injury Claim AfterA Motorcycle Accident
What Happens When You File An Injury Claim AfterA Motorcycle Accident
Injury Lawyer - What to Do When You Are the Victim
Injury Lawyer - What to Do When You Are the Victim
Maritime Accident Attorney Houston
Maritime Accident Attorney Houston
What to Look for in a Personal Injury Attorney After an Auto Accident
What to Look for in a Personal Injury Attorney After an Auto Accident
Public Bus Accident Claims
Public Bus Accident Claims
Could Your Child's Brain Injury Be Caused by Cerebral Palsy Malpractice?
Could Your Child's Brain Injury Be Caused by Cerebral Palsy Malpractice?
Minnesota Wrongful Death Compensation for Survivors and Loved Ones
Minnesota Wrongful Death Compensation for Survivors and Loved Ones
Domestic Violence and Civil Charges
Domestic Violence and Civil Charges
Sidewalk Injuries
Sidewalk Injuries
Getting The Best Personal Injury And Disability Lawyers
Getting The Best Personal Injury And Disability Lawyers
A Better Understanding of Wrongful Death Cases in Utah
A Better Understanding of Wrongful Death Cases in Utah
Accidents In Public Places Can Give Rise To Injury Claims
Accidents In Public Places Can Give Rise To Injury Claims
Personal Injury Laws - Changes in Tort Reform
Personal Injury Laws - Changes in Tort Reform
Dallas Injury Attorney, Your Friend in Need
Dallas Injury Attorney, Your Friend in Need
The Claim For Pleural Thickening Compensation Procedure
The Claim For Pleural Thickening Compensation Procedure
Been Involved In A Car Accident? Here's What You Must Do
Been Involved In A Car Accident? Here's What You Must Do

Leave Your Reply

*