When Insurance Companies Break Your Trust
Insurance companies sell trust when they sell you a policy. Because of that relationship, insurers are required to deal fairly and in good faith with their policyholders.
Every insurance contract contains an “implied covenant of good faith and fair dealing.” This covenant stipulates that neither party will infringe upon the right of the other to receive the benefits of the agreement. If an insurance company fails to abide by this implied covenant, it has acted in bad faith and will be subject to additional liability. If you feel your insurance company has acted in bad faith, contact the Denver insurance bad faith attorneys at McDermott Law, LLC.
McDermott Law serves all of Colorado and the Rocky Mountain west region. Our lawyers have extensive experience in representing victims of insurance bad faith and holding insurance companies accountable. Send us an email or call us at 303-964-1800 to arrange a free Review of Denied Claims regarding your case.
Much has been written and published to help insurance companies avoid bad faith. However, many insurers continue to employ bad faith and/or unfair claims-handling practices. What Conduct May Lead To Insurance Bad Faith Litigation? Conduct that may amount to insurance bad faith includes:
- Wrongful denial of a claim
- Unreasonable delay in paying benefits
- Unreasonable cancellation of the policy
- Failure to conduct a reasonable investigation
- Failure to promptly provide a reasonable explanation of the basis in the policy
- Ignoring the opinions of the plaintiff’s physicians regarding the nature of his injuries
- Failure to advise the insured of a right to arbitrate
- Failure to keep the policyholder informed of significant developments
Insurance bad faith involves one or more of the following:
- Misleading or deceiving a policyholder
- Neglect or refusal to fulfill a duty or contractual obligation
- The conscious doing of some wrong
In many states, if bad faith is found to have occurred, the insurance company is opened up to significant liabilities, including amounts well in excess of the policy limits or punitive damages.
The Limits Of Bad Faith
Before you pursue an insurance bad faith litigation, remember: Even if denial of benefits is wrongful or erroneous, it may not amount to bad faith. In and of itself, wrongful denial of insurance benefits is merely a breach of the insurance contract.
However, when benefits are delayed or denied unreasonably, outrageously, maliciously or without proper cause, insurance bad faith has occurred and damages can be recovered in court.
For more information about what does and does not constitute insurance bad faith, contact the insurance law attorneys at McDermott Law. Our lawyers advise and represent clients throughout the Denver area and greater Colorado.
What Sort Of Damages Can Be Awarded In Insurance Bad Faith Cases?
The more reprehensible the insurer’s conduct, the greater the damages can be awarded to an injured policyholder. It is possible to recover damages beyond the policy benefits themselves.
Starting Your Claim
If the insurance company denied your claim for insurance benefits under a policy exempt from ERISA (disability, life, AD&D, health, injury), you may have a basis for bad faith litigation.
To increase your chances of a successful claim, please contact the insurance bad faith attorneys at McDermott Law today. Founding attorney Shawn E. McDermott has been serving the Rocky Mountain region for over 20 years. Our team of dedicated lawyers can help you recover your policy benefits and any additional benefits to which you are entitled. For a free Review of Denied Claims, please complete our contact form or call 303-964-1800.