Dallas Insurance Lawyers
Insurance Bad Faith Claims
An insurance policy is a contract between the insurer and the insured. In exchange for paying your premiums, you expect your insurance company to uphold its end of the contract by compensating you for covered losses when you file a claim. Unfortunately, this does not always happen.
When insurance companies do not abide by the terms of an insurance policy, or fails to follow laws and regulations governing how insurance providers operate, it is known as “acting in bad faith.” Those affected by such practices have the right to take legal action—and Potts Law Firm can help.
If your insurance company is unreasonably denying or delaying your claim, you could have grounds for an insurance bad faith claim. We encourage you to get in touch with our team today to learn more, including how our Dallas insurance lawyers can help you protect your rights, during a free consultation.
Call (214) 238-8572 or contact us online today to get started.
Examples of Insurance Bad Faith
Insurance bad faith can take a variety of forms and may occur at various stages of the claims filing process.
Some common examples of insurance bad faith include:
- Failing to complete a proper investigation
- Unreasonably delaying an investigation
- Denying a claim without reason
- Refusing to pay a valid claim
- Offering less than a claim is worth
- Failing to pay for covered losses
- Threatening a claimant or policyholder
- Delaying or denying decisions regarding approval for medical treatment
Essentially, when an insurance company mistreats a claimant or fails to uphold the terms of a policy, it has likely acted in bad faith.
Can You Sue an Insurance Company for Acting in Bad Faith?
You can sue an insurance company for acting in bad faith. This allows you to seek compensation for damages related to the insurance company’s misconduct.
In Texas, you can seek the following damages in an insurance bad faith claim:
- Compensation for financial losses
- Up to three times the amount you would have been paid had your claim been correctly processed (in certain cases)
- Mental and emotional anguish (in certain cases)
- Attorney fees, court costs, interest, and related expenses
It may also be possible to pursue exemplary, or punitive, damages. However, you would need to prove that the insurance company acted with gross negligence or intentionally attempted to defraud or otherwise harm you in order to recover these types of damages.
In any case, it is very important that you work with a knowledgeable insurance lawyer, like those at Potts Law Firm. These are highly complex cases, and insurance companies often have vast resources to push back against bad faith claims. You need an equally powerful team by your side, one that will fight for you and protect your rights throughout the legal process.
Get started with a complimentary case review with an experienced insurance bad faith attorney in Dallas. Call (214) 238-8572 or contact us online.
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What Is Insurance Bad Faith?
Insurance bad faith refers to instances in which an insurance provider fails to uphold its obligations to a policy holder. This can include violations of specific insurance policies, as well as general failures to promptly investigate, decide on, and pay out approved claims.
Just as policyholders have a responsibility to pay their premiums and abide by the terms and conditions of their individual insurance policies, insurance providers also have a duty to do right by claimants. Failure to do so may constitute insurance bad faith and could serve as grounds for legal action.
