When you choose an insurance company, you're operating under the expectation that they will have your best interest in mind, and that they will perform in good faith.
This, sadly, doesn't always happen. If you are the recipient of especially poor service, suing an insurance company is an option you can explore. This article will tell you all about bad faith insurance and how to sue an insurance company.
What is Good Faith Insurance?
An insurance company must more or less meet these requirements to act in good faith:
• Both parties cannot act in ways that will prevent the other side from receiving their compensation or claim when they deserve to.
• An insurance company needs to consider the best interests of the people they insure, and act based on this.
What Are Bad Faith Insurance Claims?
When an insurance company acts in bad faith, they don't stick to the requirements of your agreement, or they refuse to pay a claim made to them within the allotted time period. It also happens when insurance companies don't fully brief you on the terms and limitations of a policy, leaving you to figure it out once it hurts you.
In Louisiana, for example, there are three types of claims. You can sue an insurance company when they didn't put in maximum effort to reach a settlement for your case, when they don't fulfill third-party claims to insurance as well, or when they deny supporting you for representation in a court case.
What to Expect When Suing an Insurance Company
Suing an insurance company won't be easy, there's no doubt about that. They have expertise in this field and will hire lawyers to prevent you from winning. However, if the above bad faith insurance claims apply in your situation, you can come out with a successful suit, as long as you can prove those things have happened.
Make sure to hire a lawyer who has experience driving lawsuits against similar companies before. This will ensure that they know the process in-depth, which will increase your chances of winning.
When you start, you will need a statement of claim, which exhibits what you are trying to prove. This will be filled out by your lawyer on your behalf. The insurance company will then issue a statement of defense, where they attempt to rebut your claims and prove their innocence.
Lawyers from both sides will then negotiate and argue for the case, and they may reach a conclusion that a pre-trial settlement is better for both parties. Otherwise, you can also head to court to pursue your insurance company lawsuit.
Suing an Insurance Company Strategy
Know that insurance companies should be working for you, not the other way around. Suing an insurance company when they don't perform their duties is your right. To increase your chances of winning, make sure to properly document your evidence and to hire an experienced lawyer. You need all of the help you can get when going up against big insurance!
Did you find this article on suing an insurance company to be helpful? Check out our Insurance and Law sections of the Bootstrap Business Blog for more information regarding insurance claims and lawsuits.
