You expect insurance companies to pay valid legal claims promptly. However, that doesn’t always happen. Insurers often use bad faith practices to undervalue damages. They may even attempt to avoid paying claimants altogether. A personal injury lawyer can help protect your rights if an insurance company has acted in bad faith.
How Does Insurance Work?
Insurance is a contractual arrangement between an insurance company and the policyholder. The insurance company agrees to indemnify the insured from liability for a predefined category of risks. Personal injuries and accidents are common reasons for filing an insurance claim.
Common types of insurance related to personal injury claims include, but are not limited to:
- Automobile insurance
- Fire insurance
- Homeowners insurance
- Medical malpractice insurance
- Commercial liability insurance
- Business liability insurance
- Workers’ compensation insurance
If you are injured because of another party’s negligence, intentional torts, or other wrongdoing, you can sue them for damages under Georgia personal injury laws. However, most personal injury cases begin with a claim filed with the at-fault party’s insurance company.
The insurance provider investigates the claim to determine if its insured is liable for your damages. If so, the insurer may issue a settlement offer.
What Do We Mean By Bad Faith Insurance Practices in Georgia?
Georgia insurance laws regulate many aspects of how insurers can conduct business within the state. For example, the law requires that insurance companies act in good faith when handling claims.
Good faith means honest dealing, which can include faithful performance of duties, not engaging in fraud, and using fair business practices.
Examples of good faith practices for processing insurance claims include:
- Acknowledging receipt of an insurance claim
- Timely processing of the insurance claim
- Providing accurate information about the insurance coverage and policy limits
- Giving a legal reason for denying an insurance claim
- Offering a fair settlement amount to resolve the claim
On the other hand, bad faith refers to using fraud or dishonesty in a transaction. It could mean failing to perform required duties or using unfair practices.
Examples of Bad Faith Insurance Practices in Georgia Personal Injury Cases
Examples of bad faith insurance practices include, but are not limited to:
- Refusing to acknowledge a claim
- Failing to investigate a claim or refusing to investigate thoroughly
- Requiring you to provide unnecessary and cumbersome information and documentation to process the claim
- Telling you that you should not consult an attorney or do not need an attorney to help you with your claim
- Changing the terms of an insurance policy after a claim is filed
- Aggressively pressuring you to accept a low settlement offer
- Refusing to provide a reason your claim is being denied
- Failing to pay a claim once a settlement agreement is signed
- Misrepresenting insurance laws
- Refusing to pay a valid claim that is covered by the insurance policy
Insurance adjusters, investigators, and others working for the insurance company may be subtle when engaging in bad faith practices. Therefore, knowing if you are being mistreated could be difficult. If any of the above situations apply in your case or you feel you are being treated unfairly, contact a personal injury lawyer immediately.
Can the Insurance Company Deny My Claim?
A denial of an insurance claim does not always indicate bad faith. An insurance company has the right to legally deny claims for many reasons.
Some reasons a company may deny a claim include:
- The insurance policy does not cover the loss
- The policy has lapsed and is no longer in effect
- The damages claimed were unreasonable or unnecessary
- The claims were filed after the deadline for filing claims
- There is insufficient evidence proving that the insured caused the claimant’s injuries
You have the right to appeal an insurance denial, but you must act quickly. There are procedures and deadlines for appealing a denial.
First-Party vs. Third-Party Bad Faith Insurance Claims
You can file two types of bad faith insurance claims in Georgia. A first-party claim belongs to the person who purchased the insurance coverage. For example, an insured may have a first-party claim if their provider acted in bad faith when handling a collision or homeowners claim.
A third-party claim is filed by someone alleging that the insured caused them harm. For instance, someone might file a slip and fall accident claim for an injury sustained at a shopping mall, or a driver might file a claim for damages resulting from a car accident.
If the insured is found liable for the accident, their liability insurance company is responsible for paying the victim damages. However, if the company engages in bad faith practices, such as unjustly denying the claim or delaying payment, it can be held accountable.
Seeking Damages for a Bad Faith Insurance Claim in Lawrenceville, GA
If an insurance company acted in bad faith, you may be entitled to compensation. A court may award damages for the financial losses caused by the bad faith actions, including attorney’s fees for filing a lawsuit. These damages are in addition to the damages you should have received for the original claim.
You may also receive non-economic damages for emotional distress, pain, and suffering.
If you have questions about bad faith insurance claims in Georgia, call our Lawrenceville personal injury lawyer at Lawson Personal Injury Attorneys for a free consultation.