Insurance Disputes

Insurance Coverage Disputes/Bad Faith Insurance

Every day insurance companies wrongfully deny claims made by their policyholders. Insurance companies gladly collect the insurance premiums paid by their policyholders, however, when a claim is made, it is an entirely different story. Policyholders are often left confused and aggravated when their insurance claims are denied.

The average policyholder is left vulnerable when asserting an insurance claim. A policyholder is forced to rely on his or her insurance company to determine if coverage exists. However, all insurance companies have a financial interest in denying claims. The more claims they deny, the more profit they make. In other words, insurance companies do not necessarily have their policyholders’ best interests in mind when it comes to determining coverage and paying claims.

The insurance companies are well trained in navigating the legal fine print and finding exclusions in their policies. However, often times, the insurance companies get it wrong. The insurance companies make mistakes in interpreting and applying their own insurance policies. This results in insurance companies denying claims for which coverage should have been provided. Insurance companies also deny claims based upon policy provisions that are open to interpretation and argument. Worse yet, an insurance company may deliberately deny a claim it knows should be covered. If you were denied insurance coverage, for a claim that you believe should have been covered, it is important that you consult with a skilled attorney to evaluate your rights.

Disputes may still arise even after an insurance company accepts coverage. After coverage is accepted, a battle then begins as to the amount the insurance company should pay to resolve the claim. Insurance companies constantly question the information provided by policyholders. The insurance companies also unreasonably expect policyholders to have extensive documentation to support their claims. Insurance companies are often skeptical of claims made by their policyholders. This should not be the case.
Insurance companies owe their policyholders a first party contractual duty. When an insurance company fails to perform and honor the insurance policy it agreed to, it is a breach of contract. Insurance companies have a duty to honor their insurance contracts in good faith. When the insurance companies fail to do this, they expose themselves to legal claims. A policyholder then has the right to sue its insurance company and may be entitled to attorney’s fees and damages if he or she prevails.

If you have an insurance coverage dispute or believe you had a claim wrongfully denied, contact the attorneys at the Piccuta Law Group, LLP. Our attorneys have extensive experience interpreting insurance policies and addressing insurance coverage issues. Whatever the coverage – auto, homeowner’s, life, health, disability, long-term care – one of our attorneys is available to discuss your case at no charge.

Click here for a list of practices that insurance companies may commit that can result in legal liability and give you the right to bring a lawsuit.