Wells Trumbull of Seattle Is Your Bad Faith Insurance Attorney
Unpredictability is inherent in life. From accidents and illnesses to property damage and job loss, the unexpected happens to everyone. And when it does, having insurance coverage provides a critical safety net.
But what happens when your insurance company denies your claim or doesn’t pay what you’re owed? What can you do when you feel like the insurance company is acting in bad faith?
If you’re facing an insurance dispute in Seattle, it’s important to know your rights. You may be able to take legal action against your insurance company if they have acted in bad faith. A Seattle insurance bad faith lawyer at Wells Trumbull can help you understand your options and protect your rights. We encourage you to give us a call today to discuss your case, and next steps. Contact us at (360)435-1663.
What Is a Bad Faith Insurance Claim?
Bad faith insurance claims are a type of legal action that can be taken against an insurance company when the company has acted in bad faith towards its policyholders. This means that the company has not dealt fairly with its customers and has taken advantage of them.
There are a number of ways an insurance company can act in bad faith. Some common examples include denying a claim without a reasonable justification, refusing to pay what you’re owed, or delaying payment. An insurance company may also attempt to settle a claim for less than what you’re owed or try to get you to agree to a settlement that’s unfair.
Insurance bad faith is a serious issue. It can cause great financial harm to policyholders who have had their claims denied or not paid in full. When an insurance company acts in bad faith, it often means that the policyholder is left with no choice but to take legal action.
Contrary to what some insurance companies may believe, bad faith claims are not frivolous. They are serious legal actions that can result in significant damages being awarded to the policyholder.
If you think your insurance company is acting in bad faith, it’s important to speak with bad faith insurance attorneys in Seattle. A Wells Trumbull personal injury lawyer can help you understand your rights and take legal action if necessary.
HOW DOES AN INSURANCE COMPANY OPERATES?
When you purchase insurance, you’re entrusting your peace of mind – and often your financial security – to an insurance company. As a consumer, it’s important to understand how insurance companies operate in order to make the best decisions about your coverage.
An insurance company is a for-profit business. Like any other business, its goal is to make money. To do this, insurance companies charge premiums for their coverage. They also invest money in various types of securities and real estate. This investment income helps the company pay claims when they arise.
The insurance industry is heavily regulated by the government. This is done in an effort to protect consumers and ensure that insurance companies are legitimate businesses that can be trusted to pay claims when they’re due. One of the most important regulations requires insurance companies to have a duty to act in good faith toward their policyholders. This means that an insurance company owes you a duty of care and must treat you fairly.
When an insurance company denies a claim or doesn’t pay what you’re owed, it’s often because the company doesn’t think it will make a profit from paying out that particular claim. There are a number of strategies an insurance company can use to deny or minimize claims. Some of these strategies are legal, while others are not.
What Damages Can Be Recovered in a Bad Faith Claim?
If you’ve been the victim of bad faith insurance practices, you may be entitled to recover a wide range of damages. This may include:
Emotional distress damages:
If you’ve suffered from emotional distress as a result of bad faith insurance practices, you may be able to recover compensation for your injuries.
Lost wages:
Lost wages may be recoverable if you’ve missed work as a result of bad faith insurance practices.
Medical bills:
If you’ve incurred medical bills as a result of bad faith insurance practices, you may be able to recover compensation for your expenses.
Punitive damages:
In some cases, punitive damages may be available. Punitive damages are designed to punish the insurance company for their bad faith practices and deter future misconduct.
Difference Between Insurance Bad Faith And Breach of Contract
It’s important to understand the difference between insurance bad faith and a breach of contract. A breach of contract occurs when an insurance company fails to live up to its end of the bargain. This can happen in several ways, such as if the company denies your claim without a good reason or doesn’t pay you what you’re owed.
On the other hand, a bad faith insurance claim is a type of legal action that can be taken against an insurance company when the company has dealt unfairly with you. This means that the company has not treated you fairly or acted in your best interests.
As similar as these two terms may sound, they’re actually quite different. A breach of contract is a contract violation, while bad faith insurance is a tort. This means that a bad faith insurance claim can result in damages being awarded to the policyholder. In contrast, a breach of contract claim will typically only result in the insurance company having to live up to its end of the bargain.
Examples of Bad Faith Insurance Practices
Bad faith insurance practices can take many different forms. Some common examples include:
Indefensible Denial of a Claim
Indefensible denial of a claim is one of the most common examples of bad faith insurance. This occurs when an insurance company denies a claim without a reasonable justification.
In some cases, the denial may be based on an error or misunderstanding. However, in other cases, the insurance company may know that its denial is unjustified but deny the claim anyway in an attempt to save money.
Refusal to Pay What You’re Owed
Another common example of bad faith insurance is when an insurance company refuses to pay what you’re owed. This can happen when the company denies your claim outright or tries to get you to agree to a settlement that’s lower than what you’re actually owed.
In either case, the insurance company is acting in bad faith by failing to pay you what you’re rightfully owed.
Delay in Payment
Bad faith insurance can also occur when an insurance company delays payment on a valid claim. This may be done to get the policyholder to give up and accept a lower settlement.
It’s important to understand that insurance companies have a duty to pay valid claims promptly. If you’ve had your claim delayed, you may be entitled to take legal action against the insurance company.
Unfair Settlement Offers
Insurance companies will sometimes try to settle a claim for less than what the policyholder is actually owed (also known as “lowballing”). This is another common example of bad faith insurance.
In some cases, the insurance company may genuinely believe that the policyholder is owed less than they are claiming. In other cases, however, the insurance company may simply be trying to save money by paying out as little as possible.
Lack of an Adequate Investigation
Investigations are an integral part of the insurance claims process. Insurance companies have a duty to conduct a thorough investigation into every claim that they receive.
However, in some cases, insurance companies will fail to do this. They may try to shortcut the investigation process in an attempt to save time and money. This can lead to valid claims being denied or lowballed settlements being offered.
Misrepresentation of Insurance Policy Terms
Sometimes, insurance companies will deny claims by misrepresenting the terms of the policy. They may do this deliberately in an attempt to avoid paying out on a claim. In other cases, the insurance company may simply make a mistake.
Either way, if you believe that your insurance company has misrepresented the terms of your policy, you may be able to take legal action.
How to File a Bad Faith Insurance Claim In Seattle
If you’ve been the victim of bad faith insurance practices, you may be entitled to take legal action against your insurance company. Filing a bad faith insurance claim can be a complex and time-consuming process, so it’s important to understand your rights and options before taking any action.
The first step is to contact a Seattle insurance bad faith lawyer. An experienced bad faith insurance attorney will be able to review your case and help you determine the best course of action.
You may also want to file a complaint with the Washington State Office of the Insurance Commissioner. The Commissioner’s office can investigate your claim and take disciplinary action against your insurance company if they find that bad faith insurance has occurred.
How an Attorney Can Help With Your Bad Faith Claim
Filing a bad faith claim can be a complex and time-consuming process. An experienced attorney can help you navigate the legal system and ensure that your rights are protected.
A lawyer can also help you recover the full amount of damages that you’re entitled to. This may include compensation for emotional distress, lost wages, and medical bills.
Additionally, since most bad faith insurance attorneys work on a contingency fee basis, you won’t have to pay any upfront legal fees.
If you’ve been the victim of bad faith insurance practices, contact a Seattle insurance bad faith attorney today. A knowledgeable Seattle bad faith insurance attorney from Wells Trumbull will be able to review your case and help you determine the best course of action.
Get The Legal Representation You Deserve With Our Bad Faith Insurance Attorneys in Seattle
Bad faith insurance is more common than you might think. If you believe that your insurance company has acted in bad faith, you may be entitled to take legal action. By contacting an experienced insurance bad faith lawyer in Seattle, you can protect your rights and get the compensation you deserve.
Contact our team today to arrange for a free consultation, and let’s get started working together on your bad faith insurance claim.