When an insurance company drags its feet or denies a legitimate claim without a solid reason, it can feel like hitting a brick wall. Bad faith insurance claims are complex and often frustrating, but having the right attorney can make a world of difference. Choosing an attorney who understands the nuances of bad faith law and knows how to navigate the insurance industry’s tactics is essential. Here’s what to look for and why it matters.
Understanding Bad Faith Insurance Claims
Bad faith occurs when an insurance company unreasonably refuses to pay a claim, delays payment, or fails to properly investigate. This isn’t just about a denied claim; it’s about the insurer violating its duty to act fairly and in good faith toward the policyholder.
One of the biggest pitfalls that leads to bad faith verdicts against insurance carriers is a failure to properly move the claim investigation and decision forward. This means insurers must act promptly and thoroughly. If they don’t, it could be a strong indicator that bad faith has occurred.
For anyone pursuing a bad faith claim, it’s important to understand that these cases can be complicated. They often require detailed examination of the insurer’s conduct, claim files, and communications. That’s why having an attorney who knows what to look for and how to build a strong case is so important.
Why Experience in Bad Faith Insurance Law Matters
Not every attorney is equipped to handle bad faith claims effectively. This area of law demands specialized knowledge of insurance regulations, state-specific statutes, and court precedents. For example, states like Florida, Texas, and New York have unique laws that influence how bad faith claims are handled and litigated.
Look for an attorney who has a proven track record with bad faith insurance claims, particularly in your state. They should be familiar with local courts and judges, as well as the typical defenses insurance companies use. For instance, in March 2023, the Vermont Superior Court ruled that insurers do not need to plead a “fairly debatable” affirmative defense in bad faith claims, a development that could influence strategies in other jurisdictions.
Experience also means understanding the importance of thorough documentation. Dennis J. Wall, an attorney and expert witness, emphasizes that a company’s claims file should be Exhibit One in any bad faith litigation. An attorney who knows how to obtain and scrutinize these files can uncover critical evidence that supports your claim.
Key Qualities to Seek
- Specialization in insurance law and bad faith claims
- Experience with cases in your state
- Ability to analyze and interpret claims files and insurer behavior
- Strong negotiation and litigation skills
The Role of Expert Testimony in Bad Faith Cases
Expert witnesses can be a valuable asset in bad faith claims, but their use is often discretionary. Many cases have shown that it’s not always necessary to rely on an expert to prove bad faith. Still, when used effectively, experts can explain industry standards, typical claims handling practices, and whether the insurer’s conduct deviated from accepted norms.
Insurance companies often try to exclude or limit plaintiffs’ bad faith experts by challenging their relevance or qualifications. The International Association of Defense Counsel highlights strategies insurers use to keep expert testimony in check. Therefore, your attorney should be skilled in selecting credible experts and knowing when their testimony will strengthen your case.
In some situations, especially when the insurance company’s representatives lack sufficient knowledge about the claim’s subject matter, your attorney may have a duty to consult with an expert. This can be a strategic move to ensure your claim is well-supported and to counter the insurer’s defenses effectively.
Questions to Ask When Choosing Your Attorney
Finding the right attorney involves more than just checking credentials. It’s about finding someone who communicates clearly, understands your situation, and is ready to fight for your rights. Here are some important questions to ask:
1. What is your experience with bad faith insurance claims?
Ask about the number of cases they’ve handled, outcomes, and familiarity with your state’s laws. An attorney with a strong background in bad faith cases will better anticipate challenges and craft effective strategies.
2. How do you approach gathering and reviewing insurance claim files?
Since claim files are often the centerpiece of bad faith litigation, understanding their approach to obtaining and analyzing these documents is critical.
3. Will you use expert witnesses if necessary?
Discuss whether they typically rely on experts and how they select them. This can give insight into their litigation style and preparedness.
4. What are the potential outcomes and timelines for my case?
While no attorney can guarantee results, they should provide a realistic outlook on what to expect and how long the process might take.
5. How do you communicate with clients?
Regular updates and clear explanations are important. You want an attorney who makes you feel informed and involved.
Beware of Insurance Industry Tactics
Insurance fraud is a massive problem, with schemes like arson and staged accidents costing billions. This environment makes insurers extra cautious and sometimes overly aggressive in denying claims. Understanding this context helps explain why some claims are handled poorly or in bad faith.
Insurance companies often use delay tactics or claim investigations as a way to wear down claimants. Knowing this, your attorney should be prepared to push back and hold the insurer accountable for unreasonable delays or denials.
Resources to Help You Find the Right Attorney
Choosing an attorney is a big step. If you’re unsure where to start, resources like Enjuris offer directories of qualified, experienced attorneys specializing in bad faith insurance cases. These directories can help you find lawyers who focus on this niche and have a reputation for strong advocacy.
Remember, consulting with an attorney early can make a difference in preserving your rights and building a strong case. If you suspect bad faith, don’t wait to seek legal advice tailored to your situation.
Summary Table: What to Look for in a Bad Faith Insurance Attorney
| Criteria | Why It Matters | Example or Detail |
|---|---|---|
| Specialization in Bad Faith Law | Ensures deep understanding of insurance laws and claim handling | Experience with Florida or Texas bad faith statutes |
| Experience with Local Courts | Familiarity with judges and local procedures improves case handling | Knowledge of recent rulings like Vermont’s 2023 decision |
| Claims File Analysis | Claims files often contain critical evidence of insurer misconduct | Following Dennis J. Wall’s advice to treat claims files as key exhibits |
| Use of Expert Witnesses | Experts can clarify industry standards and insurer deviations | Ability to select qualified experts and counter insurer challenges |
| Client Communication | Keeps you informed and involved throughout the process | Regular updates and clear explanations |
Final Thoughts
Choosing the right bad faith insurance claim attorney is about more than just legal knowledge-it’s about finding someone who understands the stakes, knows the insurance industry’s playbook, and can stand up for your rights. Take your time to ask questions, check credentials, and ensure your attorney has the experience and approach that fits your needs.
If you believe your insurer has acted in bad faith, consult your own attorney as soon as possible. They can guide you through the process, help gather evidence, and build a case that holds the insurance company accountable.
Ready to Stand Up to Bad Faith Insurance Practices?
If you’re facing a denied or underpaid insurance claim, Payne Law is here to help. As Florida’s leading insurance claims law firm, we specialize in property and insurance claim disputes, including storm, fire, water, and large-loss commercial claims. Our experienced team in Orlando, and across multiple states, partners with you to ensure transparency and confidence every step of the way. With no fees unless we win, you can trust Payne Law to fight for the compensation you deserve. Contact A Lawyer Today and let us take on the insurance companies for you.
