Insurance Bad Faith
Pennsylvania Insurance Bad Faith Lawyers
Insurance Bad Faith actions are designed to make insurance companies pay claims that are justified. When an insurance company recklessly denies a just claim, bad faith litigation punishes that company for its misconduct. Due to the large net worth of insurance companies, if the wrong is serious enough, the company should pay large damages to punish it for disregarding its obligations.
Responsibility, Duty, Liability
- Your insurance company has a duty to treat you fairly, and to protect you from third-party claims, because you purchased the liability insurance, whether on your home or on your automobile.
- The insurance company has to protect your interest when settling your claim
- The insurance company must negotiate the claim rather than just protecting the company's own interest, or they can be liable to you for not protecting your interests; considered bad faith.
If you own a policy that says it is a 15/30 policy, and you injured someone and the damages exceed $15,000.00, the insurance company is only responsible to pay the $15,000.00 in coverage not the exceeded amount.
If the other party is willing to settle for the $15,000.00 and liability is reasonably clear, and the damages equal or exceed $15,000.00, the insurance company has to pay the $15,000.00.
Insurance Bad Faith Lawsuit:
- If, as in the above example, the insurance company does not pay its share ($15,000.00), then you might be able to sue your insurance company for what is called First-Party Bad Faith in an insurance bad faith lawsuit.
- Your insurance company must treat you fairly, and must not expose you to a judgment far in excess of the amount of the coverage when the insurance company could have settled the case within the coverage limits.
- Under these circumstances, you could sue with an insurance bad faith lawsuit for not only the amount you are personally responsible for to the third-party, but also sue for your emotional distress and general damages, as well as punitive damages to punish the insurance company for not treating you fairly.