Bad faith insurance claims arise when an insurer wrongfully delays or denies a legitimate claim. It can also occur under other circumstances in which the insurer’s actions are improper. To learn if you have a case, contact Colorado injury attorney D.J. Banovitz.
Types of Bad Faith Insurance Claims
The insurance company has an obligation to honor the terms of its policies. This is known as good faith. When an insurance company does not attempt to meet those terms, this is considered bad faith and it may lead to additional compensation for the claimant.
The following are types of bad faith insurance claims:
- wrongful denial of coverage;
- improper processing of a claim;
- payment wrongly reduced or delayed;
- failure to communicate with claimant;
- failure to investigate or improper investigation;
- neither approving or denying a claim within a reasonable amount of time;
- not providing an explanation for denial of a claim;
- despite liability being clear, failure to negotiate or offer a fair settlement;
- misrepresenting or failure to disclose policy limits/terms;
- altering a claimant’s policy or application;
- wrongfully canceling policy;
- significant premium increase despite claimant not being liable;
- purposefully losing documentation only to repeatedly request it;
- requesting unnecessary documentation; and
- investigative methods that are improper (harassment, threats, etc.).
If you were a victim of one of these practices, contact a Colorado injury attorney today. A lawyer can review the details of your circumstances to determine if you have the right to pursue legal action against the insurance company.
Bad Faith Insurance Claim: Steps You Should Take
One of the first things you should do is carefully review the provisions of your policy. Make sure you have a good understanding of what is covered. Of course, the language in a policy can be difficult to understand or circumstances may present certain questions, so if there are any concerns, seek legal counsel.
The second step is to collect all documentation that is related to the injuries you sustained, this includes:
- copies of medical records;
- insurance policies; and
- anything else relevant to your case.
Also keep and organize any documents from the insurance company, such as evidence of correspondence.
Make sure you also assemble any documentation that shows the other party’s liability, such as:
- statements from witnesses;
- photographs of damaged vehicles or the accident; and
- a copy of the police report.
If it’s clear that someone else was at fault and your claim is denied, the evidence may show a case of bad faith.
Lastly, contact an attorney to learn if you have the right to file a claim against the insurance company. An attorney may be able to find additional types of evidence to support your case.
Colorado Injury Attorney D.J. Banovitz
Injuries can stem from a variety of circumstances, such as a fall on another’s property or a motor vehicle crash on one of the several busy highways like Interstate 225. No matter the circumstances, it’s important you seek advice from an injury attorney at the Law Offices of D.J. Banovitz at 303-300-5060. Schedule your consultation to discuss the particulars of your bad faith insurance claim.