We’ve all heard the horror stories of someone who was injured or fell ill and was denied coverage by their insurance company. We pay hefty sums on a monthly basis with the hope that we’re covered in case of a catastrophic event, and to hear that someone was unable to get that coverage is infuriating. Sadly, insurance companies attempt to deny coverage to their policyholders more often than you think, so it’s important to understand when this denial is considered a bad faith practice. In Milwaukee and the surrounding area, your expert insurance dispute attorneys can be found at the law offices of Domnitz & Domnitz.
First party bad faith is the refusal of an insurance company to pay a claim without a reasonable basis, or the failure of an insurance company to investigate the claim in a timely manner. Third party bad faith is when the policyholder has been sued, and his or her insurance company fails to act in a timely manner and/or defend the claim.
If an insurance company delays, discounts or denies a payment without a reasonable basis, it has committed a bad faith practice. These cases are relatively easy to prove if you are represented by an experienced bad faith attorney. Another bad faith practice occurs when an insurer fails to pay a claim as a result of failing to properly investigate a claim in a timely manner. An insurer has acted negligently in this case and is liable for damages to the policyholder.
When an insurance company fails to affirm or deny a claim promptly, it is also negligent. Insurance companies are legally obligated to ensure timely communication to their policyholders, and should not require them to wait weeks or even months for the results of their claim.
If an insurance company settles or attempts to settle a claim for far less than is deserved, it may be liable for damages to the policyholder. While most insurance companies spend a lot of money marketing themselves as being on the side of their policyholders, this is rarely the case. Many companies also spend a lot of money to settle claims for less and avoid paying the full claim amount to their policyholders.
Bad faith insurance practices are bad business, pure and simple. They are damaging to customers as well as anyone involved in the claim. While it may be impossible to avoid doing business with companies that engage in these practices, it’s good to know that you have the best insurance dispute attorneys around available to you at Domnitz & Domnitz.
Contact Domnitz & Domnitz today
To schedule a free initial consultation with a Milwaukee insurance dispute attorney, call Domnitz & Domnitz, S.C. We have the resources to provide top-notch representation in a wide variety of legal issues. Contact our Milwaukee personal injury attorneys online or call 414-289-0909 today for a free consultation and review of your legal rights from respected Milwaukee attorneys.