Dothan Insurance Bad Faith Lawyer
What is insurance bad faith?
In the United States, individuals that have been victimized by the bad
acts of their insurance company have the option to pursue a tort claim.
This area of the law is known as "insurance bad faith." In most jurisdictions, it remains that insurance companies owe
their customers a duty of good faith. This means that an insurance contract
will automatically act as proof of their promise to deal fairly and honestly.
Should they subsequently fail to uphold this responsibility to the policyholder,
that person would have grounds to pursue damages—which could exceed
the original value of the existing policy. In the state of Alabama, one
may pursue an insurance bad faith claim in either a first party or third
Understanding First Party vs. Third Party Claims
In the context of a first party relationship, one must be able to prove
that their insurance provider has offered to cover damages for a specific
type of property (i.e. an automobile or a home). This would mean that
the insurance company has offered to investigate all such claims, as well
as to pay the policyholder the appropriate value for their damaged property.
Insurance bad faith may occur if they subsequently fail to conduct a proper
investigation of the damage or even acknowledge that a claim has been
filed in the first place. This may also apply in cases involving health
insurance or life insurance, but these instances are very rare.
In the context of a third party claim, one must be able to prove that they
had purchased liability insurance. Should the insurance provider fail
to adequately defend a lawsuit and/or pay a judgment to cover the cost
of the lawsuit, it could be proven that they have not acted in good faith.
Additionally, the default rule is that they must also cover all costs
associated with one's defense—regardless of the actual limit of coverage.
This area of the law can be quite complex, however, so it is highly recommended
that you discuss the circumstances of your case with an Dothan insurance
bad faith lawyer before taking any action against your insurance provider.
How common are bad faith lawsuits in the U.S.?
Bad faith lawsuits are, surprisingly, not rare in the United States. In
fact, it has been reported that about half of the toxic mold cases that
were filed in 2001 were pursued against insurance companies on the grounds
of bad faith. These cases had been previously uncommon, and those that
had been pursued were usually resolved with relatively low payouts, but
this has since changed. In the last decade or so, there have been several
notable cases in which the victims of insurance bad faith were awarded
tens of millions of dollars in damages. For this reason, you should not
hesitate to pursue a claim if you believe that you have been wronged by
your insurance provider.
Consult with an Alabama Insurance Attorney Today
Think that you have a valid insurance bad faith claim? If so, we encourage
you to get in touch with a Dothan insurance lawyer at Morris, Cary, Andrews,
Talmadge & Driggers, LLC as soon as possible. Our lawyers have earned
extensive recognition for their work in the field of
personal injury law, including membership in the Multi-Million Dollar Advocates Forum, so
you can rest assured that our firm is well-equipped to represent your case.
To learn more, simply pick up the phone and
give us a call at (888) 694-0174 for a free initial consultation.