Despite the claims from insurance companies that they are there to help you in times of great need, certain bad actors give a bad name to the whole industry by delaying payments, denying rightful claims, and making the process far too complicated for the average consumer. Taking on an insurance company to receive just compensation, or even understanding the best course of action following a car accident or workplace injury, is extremely difficult alone. Whenever dealing with insurance, large payouts, and another party, contact an attorney with experience in personal injury and bad faith litigation cases.

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Bad Faith Insurance Companies

A bad faith insurance company, or an insurance company that is acting in bad faith regarding your case, means that the company is doing one or all of these things:

  1. Failing to pay out compensation to policyholders up to the limit of coverage
  2. Handling cases in a lethargic manner to discourage claimants
  3. Not defending policyholder lawsuits
  4. Misconstruing terms of a policy
  5. Making threats or false promises to policyholders
  6. Denying claims without doing proper research or investigation into the situation

In a perfect world, you and your insurance provider can quickly agree on the facts of the case and the amount of compensation you deserve. Any time you feel like the insurance company is stringing you along, you should discuss the potential of bringing forth a bad faith lawsuit with an attorney. 

Proving Bad Faith In Court

There is never a clear-cut case of ‘bad faith,’ as the term is broad and can apply to a vast number of scenarios. Florida law states, “Any person may bring a civil action against an insurer when such person is damaged… by the commission of any of the following acts by the insurer“, with different scenarios following this test of the law. The most relevant section states that civil action can be taken when the insurer is “Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests.

As you can see, proving that a company acted in a way different than how it ‘could and should have done’ is not simple to understand. In cases where gross negligence can be proven, like the denial of a claim despite no research or investigation, it is easier to get compensated. However, insurance companies often claim that certain bills, like medical bills and other financial struggles after an accident, are exaggerated and refuse to pay the total amount. Without adequate documentation starting from the day of the accident, it can be your word against the power of an entire insurance company.

That’s why it is essential to get in contact with a local attorney and begin the process of gathering evidence as soon as possible. Even if your insurance company is paying you adequate amounts of compensation, insurance companies also have a duty to assist with legal fees and lawsuits from other drivers who are trying to sue you for an accident. Failure to defend a claim or suit, even if some or most of the case is not covered by the insurance policy, is another example of bad faith.

If you need an experienced car accident attorney after a Sarasota, Brandon, or Bradenton driving accident, call Probinsky & Cole. We’ll help you to sort through the details and deal with bad faith from your insurance company.

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