Whether as an individual or the owner of a business, maintaining various types of insurance is strongly recommended, and can protect against huge financial losses and personal liability in the event of an accident or natural disaster. While maintaining insurance is key and can be the difference between business closure or survival if disaster strikes, insurance companies aren’t always fair, honest, or scrupulous when managing insurance claims. Indeed, an insurance company may deny a claim in bad faith as a way to save the insurance company money. If you believe that you are the victim of a Philadelphia insurance bad faith claim denial, our Philadelphia insurance bad faith attorneys at the office of van der Veen, Hartshorn and Levin today.
What Is Insurance Bad Faith?
When an insurance company goes back on its commitment to its client per the contract between the insurer and the insured, the insurer is committing an act of bad faith. Typically, the two primary actions that constitute insurance bad faith are 1) an insurer failing to investigate a policyholder’s claim within a reasonable period of time (or at all), and 2) refusing to pay a legitimate claim. Misrepresenting policy language, failing to disclose policy limitations, and making unreasonable demands for the policyholder to prove a covered loss are examples of bad faith,
Civil Remedies for a Bad Faith Insurance Claim
Under Pennsylvania law, a policyholder who has been a victim of bad faith is permitted to pursue a private cause of action against the insurance company and seek damages, including the amount owed under the claim, interest on that amount, attorneys’ fees and court costs, and punitive damages if appropriate. In order to hold an insurer liable for the above and recover damages, you must prove that:
- There was no reasonable basis for the insurance company to deny the claim;
- More than just negligence or error occurred – the insurance company was motivated by ill-will or self-interest; and
- Bad faith can be proven by clear and convincing evidence.
Bad faith claims can be brought against insurance companies of all types, including car insurance providers, property insurance providers, business liability insurance providers, and more.
Call Our Philadelphia Insurance Bad Faith Attorneys for the Help You Need
As a business owner in our city, you certainly depend on the insurance coverage you have in the event of an emergency or natural disaster. Our Philadelphia insurance bad faith attorneys understand what you’re going through if your claim has been unreasonably denied, your insurer is refusing to investigate your claim, or you are not being provided with straightforward answers to your questions. To learn more about insurance bad faith and how we can help you bring forth a civil bad faith claim and seek damages, call our law firm today. We offer free consultations and are able to work on a contingency fee basis. Reach us online or by phone to get started.