Bad faith insurance occurs when an insurer fails to uphold its duty to treat policyholders honestly and fairly. This includes denying valid claims, causing unnecessary delays, or offering unfair settlements—all of which may violate the policy and the legal principle of good faith and fair dealing.
These tactics can leave policyholders financially vulnerable, emotionally stressed, and legally disadvantaged. Fortunately, if an insurer acts in bad faith, the law gives you the right to pursue compensation.
At Gervelis Law Firm, we help Ohio policyholders fight back. For more information, contact us online or call us at 866-792-2728 for a free consultation today.
What is Bad Faith Insurance?
All insurance companies must uphold the legal principles of good faith and fair dealing. Bad faith insurance occurs when an insurer fails to act honestly and fairly toward its policyholders. Insurers’ actions in bad faith can harm policyholders, resulting in financial and emotional stress.
How Insurance Companies Act in Bad Faith
Some of the general behaviors of bad faith insurers can include:
- Unreasonable denial of valid claims
- Delaying the processing of claims without justification
- Offering settlements far below the policy value
Bad faith can also involve both active misconduct, such as misrepresentation and deceptive practices, and passive misconduct, like failure to investigate or communicate. Our Ohio personal injury attorneys can handle both types of actions on your behalf and pursue fair compensation.
Examples of Bad Faith Insurance Practices
- Denying a claim without a valid reason
- Example: After a hailstorm, a Columbus homeowner files a claim for roof damage. The insurance company denies the claim, citing normal wear and tear, despite photos showing fresh damage from fallen limbs.
- Offering an unreasonably wow settlement
- Example: A Cleveland driver hit by another vehicle sustains damage and injuries. The at-fault driver’s insurer admits liability but offers a settlement that barely covers repairs, even though policy limits would allow full coverage of medical bills and lost wages.
- Unreasonable delays in processing a claim
- Example: A Cincinnati small business files a claim after a kitchen fire. The insurer, despite its policy rules for prompt investigation, repeatedly requests documentation for months and changes adjusters without providing clear reasoning, delaying repairs, and forcing the business to close.
- Failing to defend a policyholder in a covered lawsuit
- Example: An Akron contractor is sued for property damage. The contractor promptly notifies their insurer and requests defense as per their liability policy. The insurer refuses legal counsel, forcing the contractor to pay for their own defense.
- Misrepresenting policy terms or exclusions
- Example: A Toledo homeowner’s insurance policy covers sewer backup water damage, but a significant basement flood results in a denied claim, citing an exclusion. Ohio law holds insurers accountable for misrepresentation.
Signs That You Are a Victim of Bad Faith Insurance
Bad faith insurance practices can occur in various scenarios, including car and truck accidents, slip and fall incidents, and other similar situations. You can look for several indicators that you may be experiencing bad faith as a policyholder, including:
- Repeated claim denials without valid reasoning
- Extremely low settlement offers
- Unreasonable delays in settlement
- Inadequate investigation into the claim by the insurance company
- Lack of clear communication or non-responsiveness from the insurer
Bad faith insurance can be difficult to prove, especially if you are unsure whether the insurer’s behavior is legally actionable. Consult with a seasoned attorney with Gervelis Law today to secure advocacy and determine next steps.
What To Do if You Suspect Bad Faith Insurance
Here is a step-by-step guide on what to do if you suspect bad faith insurance:
- Review your policy and insurer correspondence. It is essential to carefully review your policy to ensure all communication with the insurer aligns with its terms and conditions.
- Document everything. Keep track of emails, phone calls, letters, and any other information that may be used as evidence to support your case.
- Attempt to resolve the issue directly. It is always best to attempt to resolve matters outside of court. However, our team will not hesitate to litigate on your behalf to get you the compensation you deserve.
- File a formal complaint with your state’s insurance department. To formally begin the process of seeking a fair resolution, you will need to file a complaint with the proper authorities.
- Speak with a qualified attorney. We always recommend seeking legal advice for your case. Our compassionate and experienced lawyers can navigate the complexities of bad faith insurance claims from start to finish.
How Gervelis Law Can Help With Bad Faith Insurance Claims
We know how overwhelming it can feel to fight a powerful insurance company, especially when your claim has been delayed or denied unfairly. At Gervelis Law, our attorneys understand Ohio’s legal landscape and are well-versed in identifying bad faith tactics and pursuing the justice that policyholders deserve.
We will:
- Investigate your claim thoroughly
- Request and analyze key documentation
- Determine whether bad faith occurred
- Negotiate directly with your insurer
- File a lawsuit for damages, if necessary
Legal representation is crucial when it comes to obtaining the full and fair compensation you deserve. Call us today at 866-792-2728 or contact us online for a free consultation.
