Can You Sue Your Insurer For Unfair Treatment?
The fast answer to the title question is this: If the terms of an insurance policy are failed or violated, your insurance company can be sued. What would be included in common violations? Here are a few:
- Making bad faith claims
- Not paying properly filed claims
- Not paying claims in a timely manner
To protect consumers and allow for suing an insurer, special laws have been designed. Lawsuits under these laws are not uncommon.
It’s hard enough to deal with the misfortune of a lost loved one, injuries, property damage, etc. On top of all of that, if you have to battle with an insurance company, you’re likely to feel overwhelmed. The following information should be helpful to those wanting enlightenment regarding a claim that has been denied, other misconduct, and the suing of an insurance company as a result.
Was Your Claim Denied? Can You Sue?
There can be any number of reasons why your claim may be denied by an insurance company. Routinely, they have an entire arsenal ready. However, to their policyholders, many obligations are in place for insurers. They must avoid unfair trade practices, act in good faith, and abide by the policy/contract terms. From state to state, their precise duties vary. At a state level, regulation of most insurance industries takes place.
However, insurance companies must refrain from the following, typically, to fulfill their obligations:
- Based on an application statement, after passing the “period of contestability”, denying a claim.
- Where a minimum of one of your claims is potentially liability policy-covered, failing to defend you in a liability lawsuit.
- With very little (or no) denial reason, simply denying a claim.
- Within a specified or reasonable timeframe, failing to deny or approve a claim.
- When liability is reasonably clear, refusing to pay.
- A delayed or inadequate investigation into a claim.
If your insurer refuses to budge, but you still believe your claim was improperly denied, it is within your right to look into an insurance company lawsuit (to sue them).
Lawsuits Against Your Insurer
The kind of suit you can bring against your insurer depends on the state in which you are employed.
- Throughout all states: Since your insurance policy is a contract, more or less, a “breach of contract” action is allowed throughout every state.
- Some states allow lawsuits to be pursued which are referred to as “bad faith”.
- Under the unfair trade practice laws of your state, you may also be able to sue. Within the insurance industry, pertaining to trade practices, many states have statutes or codes.
Don’t Fight Your Insurance Company Alone, Contact Stone Claims Group For Assistance
Our public insurance adjusters will always fight for fairness. Maximize your claim recovery with Stone Claims Group. We specialize in commercial claims considered complex by others. We service retail businesses, strip malls, warehouses, public buildings, high-rises, restaurants, multifamily buildings, and more. Our areas of expertise extend to umpire services (to help settle claim disputes), preliminary inspections, appraisal services, public adjusting, and more. Let us handle the headaches.
Got questions? Feel free to check out our FAQ page.
Click here for a free claim review or give us a call at 1-800-892-1116. You can also email us at email@example.com.