If you have been hurt in a car accident or some other type of accident, you have likely filed a claim with an insurance company. Although the insurance company may be legally obligated to compensate you according to the terms of an insurance policy, they are still a for-profit business. Large insurance companies have teams of adjusters and lawyers who are out to protect their bottom line.
So, don’t be surprised if the insurance company tries to make you a low-ball settlement offer. At the end of the day, they make more money when they undervalue claims. However, if they step over the line into bad faith, you could take legal action against them.
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Insurance Policies & Bad Faith
When you sign up for an insurance policy, you are entering into a contract with the insurance company. The insurance company agrees to make you whole in the event of a covered loss. In exchange, you agree to pay them regular premiums at an agreed-upon price.
Each of these contracts has an implied covenant of good faith and fair dealing. This means that the insurance company has an implied duty to act in good faith when resolving claims. If they fail to uphold this duty, you could be entitled to damages beyond the amount of your original claim.
What Are the Legal Elements of Bad Faith in Pennsylvania?
Some states have specific laws outlining the elements required for proving a bad-faith claim. However, the elements required in Pennsylvania are not specifically listed in the statute. Generally, you must prove that the insurer lacked a reasonable basis for denying your claim or benefits. Additionally, they must have known about or disregarded the lack of basis.
There are many scenarios in which bad faith may be present. Some common examples include:
- Failure to investigate a claim after all paperwork and documentation was properly submitted
- Intentionally delaying the processing of a valid claim
- Offering a settlement that is substantially lower than the claim’s actual value
- Misrepresenting the coverage available in the policy
- Denying a claim with no reason at all – especially when the insurance company refuses to provide documentation about their reason for denial
- Intentionally misrepresenting the facts surrounding the claim
- Trying to use high-pressure tactics to get you to accept a settlement for significantly less than the claim is worth
- Failing to respond to communications in a timely manner
- Ignoring or attempting to cover up evidence that supports your claim
- Changing the terms of a policy after the claim has been submitted
Do not let the insurance company intimidate you, and do not fall for these tactics. If you believe the insurance company is dealing in bad faith, contact an experienced personal injury lawyer immediately.
Types of Evidence Used in Bad Faith Claims
There are many types of evidence that may be used to prove your case. First, make sure that you keep detailed records of all conversations with the insurance company. These records may be used as evidence in a bad faith claim.
Additionally, details found in the claim itself may be used. The insurance company will likely try to keep their internal communications out of court. However, a pattern of behavior can often be identified by accessing internal memos, training materials, or other documentation that shows how claims are typically processed.
If a bad faith allegation goes all the way to court, a judge or jury will hear the evidence and decide whether the insurance company failed to work in good faith. Insureds who prove their case are entitled to recover several different types of damages.
Damages Available in Bad Faith Claims
When a victim is successful with a bad faith claim, they are essentially winning two cases at once. Not only can they be awarded the original amount of their claim, but Pennsylvania law also provides other damages to which they may be entitled, including:
- Interest on the amount of the original claim
- Attorney fees
- Court costs
- Punitive damages
The specific value of your bad faith claim will depend on the facts of your case and the amount of your original claim. Remember that insurance policy limits do not apply in bad faith claims. However, there may be a cap on the amount of punitive damages you can be awarded.
Get Help From a Pennsylvania Lawyer Today
If an insurance company has denied your claim for seemingly no reason, you could have an action for bad faith. Call the team at Marzzacco Niven & Associates to schedule a free consultation. We can investigate the details of your situation and advise you of your legal options.
Schedule a Free Consultation With a Harrisburg Personal Injury Lawyer
Strict liability claims, particularly product liability claims, can be difficult to win. Schedule a free consultation with a Harrisburg personal injury lawyer to find out whether your claim is viable. Most personal injury lawyers at Marzzacco Niven & Associates will not charge you any legal fees unless they win your case. Call us at (717) 231-1640.