Union County Bad Faith Insurance Claim Lawyers

When you purchase insurance, whether for your home, car, business, or health, you’re buying peace of mind. Though you expect that your insurer will be there when you need them most, this, unfortunately, is not always the case. Some insurers will deny valid claims, delay payments, or otherwise act unfairly toward their policyholders. If you believe you’re a victim of insurance bad faith, you can depend on the seasoned lawyers here at Lee Law Firm LLC to file a claim on your behalf and pursue the compensation you deserve. Contact us for a free consultation today.

What is Insurance Bad Faith?

Every insurance policy carries an implied duty of good faith and fair dealing. That means your insurer must act honestly and fairly when handling your claim. Bad faith occurs when an insurance company violates this duty, either by intentionally denying a valid claim, failing to investigate properly, or otherwise placing its financial interests above those of its policyholder.

Under N.J.S.A. 17:29B-4, unfair claim settlement practices are prohibited. This statute lists specific actions that may qualify as bad faith, such as failing to acknowledge communications promptly or refusing to pay claims without conducting a reasonable investigation.

Importantly, there are two primary types of bad faith: first-party and third-party. A first-party claim is when an insurance company fails to handle a policyholder’s own claim properly. A third-party claim, on the other hand, is when the insurer’s duty to defend and indemnify the policyholder against claims made by others.

Examples of Bad Faith By Insurance Companies

Insurance bad faith can come in many forms, but some of the most common examples that our firm sees are as follows:

• Refusing to pay a valid claim without a clear or legitimate explanation.
• Ignoring critical evidence or conducting a rushed or incomplete investigation before reaching a decision.
• Stalling the claims process or failing to issue payment within a reasonable time after liability has been established.
• Proposing a settlement far below the actual value of the claim.
• Providing false or misleading information about coverage, exclusions, or policy limits.
• Ignoring calls, letters, or emails from the policyholder.
• Reaching an agreement that harms the policyholder’s interests or exposes them to additional liability.
• Avoiding or delaying decisions to prolong the process or pressure the policyholder.

Your Legal Rights As a Policyholder

As a policyholder, you have several rights designed to protect you from bad faith insurance practices. If you’re a victim of insurance bad faith, you may be entitled to recover not only the amount owed under your policy but also additional damages caused by the insurer’s misconduct. If you believe your insurance company is acting in bad faith, you should take the following steps:

• Document every interaction you have with your insurer and keep copies of all correspondence and notes about who you spoke to and when.
• Review your policy to make sure you fully understand your coverage, limitations, and exclusions. Many disputes stem from misunderstandings that can be clarified by reviewing the policy language.
• If your claim is denied, ask for the specific reasons in writing. Insurers are required to provide clear explanations for denials.
• Reach out to a knowledgeable bad faith insurance claim lawyer who can evaluate your case, determine whether the insurer violated its legal obligations, and, from there, fight for the best outcome possible on your behalf.
• File a formal complaint to the New Jersey Department of Banking and Insurance, which oversees insurance company conduct throughout the state.

Contact Our Bad Faith Insurance Claim Lawyers

If you believe your insurance company has acted in bad faith, don’t wait to seek help. Contact the dedicated Union County bad faith insurance lawyers here at Lee Law Firm, LLC to schedule a free initial consultation.