Bad Faith Insurance Overview
Know When to Call a Bad Faith Insurance Lawyer in Rancho Santa Fe
Insurance companies were created with the sole purpose of helping people recoup their losses after a tragedy. Unfortunately, good intentions have been muddled with corporate structure and the all too typical practice of businesses to focus solely on profit. Instead of providing their insured with the money they rightfully deserve, many unscrupulous companies and brokers unreasonably delay or deny a valid insurance claim.
This has happened so often that the law finally stepped in and created regulations to prevent bad faith insurance. Insurance companies have a duty to quickly and reasonably investigate claims and provide payment.
If you are having problems collecting on an insurance claim, call (858) 247-3828 to speak with our Rancho Santa Fe bad faith insurance attorneys.
How Bad Faith Practices Started
Paying out every insurance claim makes a serious cut in the insurance company's profits-simple math made it easy for them to realize that denying a claim was better for their business than paying out. Many insurance claim denials go uncontested by the insured, and companies have unreasonably denied thousands of claims believing that the victims will never fight back.
Sometimes, just having an attorney warn an insurance company that they will be pursuing a bad faith insurance case is enough to have them reverse the decision. These businesses want to avoid bad press as much as possible, and will strategically deny claims they believe they can get away with without a struggle.
A successful bad faith insurance case will force an insurance company to pay a lot more than the original claim they denied.
After being mistreated by an insurance company, the insured could potentially recover damages for:
- The original payout owed by the insurance company
- Emotional distress
- Compensation for the additional time they had to wait for payout after a denial
- Attorneys' fees for the plaintiff's legal counsel
- Punitive damages
Damages vary from state to state, but they will all end up costing the insurance company more than if they had approved your claim. If you believe your claim was wrongfully denied, consult with a Rancho Santa Fe bad faith insurance lawyer as soon as possible. Once the insurance company realizes you mean business, they may reverse their decision before legal action is even necessary.
To consult with experienced attorneys about your problems with an insurance company, call (858) 247-3828 today.