What Is Insurance Bad Faith?
Individuals and businesses who purchase insurance expect to be treated fairly and to receive the legal and factual protection for which they have paid. Unfortunately, not all insurance companies comply with their legal and contractual obligations. The pressure to increase profits can place an incentive on unscrupulous behavior.
If you’re wondering what is insurance bad faith because you’ve been mistreated by your insurer and it’s not sitting well with you, we want to speak with you. We often find that prospective clients’ intuitions are correct, and they do indeed have a pursuable claim for insurance bad faith against an insurer.
Bad faith laws can be difficult to understand – and pursuing a bad faith claim against an insurance company can be time-consuming and overwhelming – which is why it is important to connect with an attorney like ours as soon as possible.
Here at the Law Office of Matthew L. Sharp, we’ve been representing individuals and businesses in insurance disputes, including claims for insurance bad faith, for more than 30 years, and we want to help you. Contact our Reno law office to learn more about Nevada insurance laws and your legal options. We offer no-risk, no-obligation consultations.
What Are Insurance Bad Faith Laws?
Insurance laws require insurance companies to treat their customers in accordance with standards of good faith and fair dealing. If an insurance company fails to do so, the conduct may amount to insurance bad faith.
Examples of bad faith practices insurers engage in include:
- Wrongfully denying payments to policyholders
- Unjustifiably reducing the amount of a claim
- Failing to provide a reason for a claim denial
- Delaying making a payment on a claim
- Failing to conduct a fair and complete investigation into a claim
Unfortunately, not all insurance companies look out for their policyholders’ interests and instead favor their own interests to the detriment of their customers. When an insurance company acts in bad faith and fails to comply with their duty of good faith and fair dealing, the policyholders may be entitled to financial compensation for the damages caused by the bad faith conduct, including:
- Insurance policy benefits that were wrongfully denied
- Financial distress or loss caused by the wrongful denial
- Emotional distress caused by the wrongful denial
What Should I Do if I Suspect Insurance Bad Faith?
If you have suspicions that what you’re dealing with was inappropriately handled but are still unsure what insurance bad faith is and whether it rises to that level, reach out to a lawyer as soon as possible.
Insurance bad faith laws can be factually and legally complex, and they are considered a breach of contract under Nevada law. You will want to consult with an attorney who understands these complexities and will fight to get you the financial recovery you need.
You also need to take a few steps to make sure you have the proper evidence and documentation to support your claims. When preserving proof, you will want to keep detailed documentation of your insurance policy, the declarations page, and any endorsements.
Additionally, make sure to save copies of the claim form you submitted. If you have injuries, you need to hold on to medical records, bills, and treatment notes. Photos and videos of property damage, accident scenes, or any other evidence can help to substantiate your claim.
In these cases, you will want to have a record of your correspondence with the insurer. Whether it is emails, letters, or notes from phone calls with the insurer, document everything. With that, you can have a clear record of your interactions and communications with the insurance company.
If the insurer delaying the processing of your claim or denial has impacted you financially and emotionally, you must also document those damages. All this information can help when you need to take legal action against the insurance company with a bad faith claim.
Get the Help You Need for Your Bad Faith Insurance Claims
For more than 30 years, Matthew Sharp has focused on handling bad faith claims and other insurance disputes. He has the experience and know-how that you need to pursue an insurance claim efficiently and effectively. He represents clients dealing with all types of insurance disputes.
So, if you suspect insurance bad faith, contact Matthew L. Sharp to schedule a free consultation to learn more about your rights and options. Your initial meeting with him is completely free.
