Are you currently in a dispute with your insurance company due to bad faith insurance practices? Insurance companies may use various tactics to limit or deny claims. However, insurance companies are still legally bound by the rules of their contracts and can face punishment if they wrongfully refuse to pay out legitimate claims.
Barcus Arenas, PLLC, has over two decades of experience pursuing bad faith lawsuits against insurance companies. A New Orleans insurance claims lawyer from our firm can hold insurers accountable for their obligations. No matter if you’re facing a dispute over health insurance or auto insurance, we have the skills and know-how to assist.
Contact our offices today to speak to a bad faith insurance lawyer in New Orleans.
What Is an Insurance Bad Faith Lawsuit?
Insurance policies are legally binding contracts, and insurance companies are obligated to pay out according to the terms of the deal. When they refuse or otherwise wrongfully deny you payments, you can file a bad-faith lawsuit against them.
That’s why it’s so important to understand the structure of your insurance policy. Policies may have a number of conditions or exclusions that are not straightforward. Sometimes, this opaqueness is deliberate and a means to get you to sign up for a policy that is not really to your benefit.
If you believe that your insurance company is refusing to pay you a valid claim, then you need to speak to a New Orleans bad faith insurance attorney immediately. They can assess the policy to determine the insurance company’s obligations and whether they are operating in bad faith.
For a free legal consultation with a bad faith insurance lawyer serving New Orleans, call (800) 941-1041
Types of Bad Faith Insurance Practices
Louisiana Revised Statutes 22:1892 establishes that all insurance companies have a legal duty to deal with claims in good faith. This means they must adjust claims fairly, promptly respond to claimant requests, and make reasonable efforts to settle the claim within a reasonable timeframe. Below are some common examples of bad faith insurance practices:
- Denying claims without providing a valid reason
- Delaying responses or making a decision
- Repeatedly making lowball offers
- Refusing to pay a valid claim
- Not investigating promptly
- Threatening retaliation
- Not providing the necessary insurance information or documentation
- Delaying payments after a settlement has been reached
- Lying or misrepresenting the facts of your case
Insurance companies act in bad faith for the simple reason that they are businesses trying to make money. Every claim they pay means less revenue for them, so they have a substantial incentive to pay as little as possible.
First-Person vs. Third-Person Bad Faith Claims
There’s an important distinction to be made between first-person and third-person bad-faith insurance claims. A first-person insurance claim is one you make with your own insurance company—i.e., health insurance. So, a first-person bad-faith lawsuit is made against your own insurance company.
This is in contrast to a third-party claim, which you make with another person’s insurance company. Most personal injury lawsuits are third-party claims. As such, a third-party bad faith lawsuit is when you sue an insurance company that is not your own.
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How to Prove the Insurance Company Acted in Bad Faith
The law states that in order to hold an insurance company accountable for bad faith practices, you must show that the breach of their contractual duty was arbitrary, capricious, or without probable cause. More specifically, you must show two things:
- You have a valid insurance policy, and the insurer has a duty to comply
- The insurer violated that duty without a valid reason
Proving bad faith is difficult, as it’s hard to prove intentions. That’s why you need to keep records of all communications with the insurance company throughout the claims process. For example, copies of letters and emails can show that you followed procedure, and the company still delayed your payments.
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Compensation You Can Recover in an Insurance Bad Faith Lawsuit
A bad faith insurance lawsuit can compensate you for the losses you suffered as a direct result of the insurer’s conduct. This may include the following:
- Claim value. Primarily, you can recover the value of the claim that is under dispute.
- Economic losses. Economic losses can include things like health care costs or the costs of repairing your vehicle.
- Lost work income. If you had to take off work, the lawsuit can compensate you for lost work income.
- Additional costs from the denial. Any additional costs incurred by the denial (e.g., exacerbated property damage) can be covered in a lawsuit.
- Non-economic losses. Non-economic losses include damages for pain and suffering, mental anguish, and emotional distress.
- Attorney’s fees. The insurance company may also have to pay your attorneys’ fees, separate from any settlement.
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Contact a New Orleans Bad Faith Insurance Claim Lawyer
An insurance denial can set you back, and bad faith practices can make your situation even worse. Barcus Arenas, PLLC, can be your legal advocate and work to hold bad-faith insurance companies accountable to their payment obligations. We are unafraid to confront insurance companies and try your case in trial, if necessary.
Contact our offices online or call today to speak to a New Orleans bad faith insurance lawyer.
Call or text (800) 941-1041 or complete a Free Case Evaluation form
