How Can I Determine if My Insurance Company Is Acting in Bad Faith?
We purchase insurance to protect us in the event that we need it, and when the time comes, we expect that insurance to cover our losses fairly. Bad faith when it comes to insurance providers broadly refers to either purposefully or recklessly ignoring those laws that are put in place to govern the sprawling insurance industry and to keep them in line in terms of what claimants are entitled to. If you have an insurance claim that you believe the insurance company is handling in bad faith, reach out to an experienced Philadelphia bad-faith insurance attorney today.
What Qualifies as Bad Faith
In order for your insurance company’s actions to qualify as bad faith, they must either fall short of meeting the duties implied by the insurance policy in question (Common Law Bad Faith) or violate Pennsylvania’s Insurance Bad Faith Statute, 42 Pa.C.S.A. § 8371 (Statutory Bad Faith). While the Pennsylvania Bad Faith Statute does not define “bad faith”, the Pennsylvania Supreme Court has set forth a two-part test for determining whether the actions of an insurance company rise to the level of “bad faith”. Specifically, the Pennsylvania Supreme Court has explained that:
[I]n order to recover in a bad faith action, the plaintiff must present clear and convincing evidence (1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew of or recklessly disregarded its lack of a reasonable basis.
Rancosky v. Wash Nat’l Ins. Co., 170 A.3d 364, 376 (Pa. 2017). The insurance company’s actions must go beyond mere negligence or bad judgment.
Proving that your insurance company acted in bad faith involves complex legal matters and having a knowledgeable bad faith insurance attorney backing you up from the start is always advised.
Signs to Look For
Every bad faith case involves its own unique circumstances and follows its own course, but many involve unfair practices like the following:
- Engaging in practices that are deceiving, which could mean withholding information from you or lying directly to you – as the claimant
- Delaying the resolution of your claim to the degree that it’s unreasonable and serves to harm you
- Misinterpreting the duties and coverages provided in the policy in order to avoid paying out what you’re owed
- Refusing to conduct an adequate investigation into the matter identified in your claim or refusing to conduct any investigation
- Making the claims process far more complicated than it should be, such as by requiring you to jump through hoops in relation to proof of your losses
Making an early low-ball settlement offer in an effort to settle your claim before you recognize the extent of your legal damages may generally not support a bad faith case, but it is a good indication that the insurance company may not have your best interest at heart and to proceed with caution. If the insurance company is deemed to have engaged in bad faith conduct, you may be entitled to punitive damages in addition to compensation for your covered losses.
Consult with an Experienced Philadelphia Bad Faith Insurance Attorney Today
The formidable Philadelphia bad faith insurance attorneys at HGSK Injury Lawyers have reserves of experience rooting out bad faith practices on the part of insurance companies – in pursuit of justice and just compensation on the part of our clients – and we’re here for you, too. For more information about how we can help, please contact us online or call 267-350-6600 and schedule a free consultation today.