Protecting Your Rights Against Bad Faith Insurance Practices

The Expectation of Insurance Coverage and the Threat of Bad Faith Practices in Pennsylvania

When you buy insurance, you expect that you and your family will be protected from the financial fallout of the variety of catastrophic events your insurance covers. This is, after all, the purpose of insurance policies, be they fire insurance, flood insurance, life insurance, or others. Pennsylvania insurance providers are required by law to uphold the terms and promises of their policies and serve their clients to the full extent of their capacity. Sometimes, however, companies act in bad faith, delaying or even outright denying payment of insurance claims for events that ought to be covered. These bad faith insurance maneuvers are illegal, and you have the right to fight them. Our team at Cohen & Riechelson is devoted to making sure our clients are protected from bad faith insurance scams and get the full extent of the insurance policy benefits they pay for. Contact us today for a free consultation to discuss your claim, and read on to learn more about bad faith insurance and how we can assist with taking action against it if it happens to you.

A Comprehensive Look at Insurance Types and Common Claims in PA

There are multiple types of insurance that Pennsylvania residents often invest in. Some include home insurance, car insurance, accident insurance, renters insurance, homeowners insurance, landlord insurance, workers’ compensation insurance, flood insurance, and fire insurance, though there are many other types offering a variety of protections. Accidents in cars or at work, natural disasters, injuries, and death are common reasons for individuals to file insurance claims in Philadelphia.

Possible Penalties Under Pennsylvania’s Bad Faith Statute for Insurance Companies

Under the Pennsylvania Bad Faith Statute, an insurance company can be heavily penalized for engaging in illegal bad faith practices. Three primary penalties exist for such companies according to the statute. The court may charge the company interest on the insurance claim amount from the date that the claim was filed, at the prime rate of interest plus three percent.  Additionally, punitive damages against the insurer may be awarded. Finally, the insurer may be responsible for covering court costs and attorney fees.

What are Considered Bad Faith Insurance Actions?

While there are many examples of bad faith insurance, they all involve the unjust denial or delay of a valid claim. Examples of bad faith maneuvers by an insurer include denying payment of a valid claim or not following through with its payment, delaying processing of a claim or its payment, failing to properly investigate a claim, asserting falsely that investigation of the claim led to its denial when it was not in fact investigated, refusing to explain claim denial, offering a lower settlement than is just given the claim or undervaluing a claim, illegally refusing to negotiate a claim or communicate regarding the processing of a claim, and failing to settle a lawsuit or claim that contains the necessary elements for settlement.

Requirements for Proving Bad Faith in PA Insurance Claims

In order to prove bad faith handling of an insurance claim, a plaintiff must prove certain standards. First, they must prove that the insurer did not have reason to delay or deny benefits for the insurance claim filed. Additionally, they must provide evidence that the insurer either knew or recklessly ignored that no reason for denial existed and yet went ahead with denial or delay.

Recovering Damages in a Bad Faith Insurance Scenario

A skilled bad faith insurance claims attorney will help you recover damages for your illegally delayed or denied claim. Damages include actual financial losses resulting from the poor processing of the valid claim, plus interest; court costs and attorney fees payment by the insurer; and even damages for emotional pain and suffering.

Wondering How to Handle a Bath Faith Insurance Claim In PA? Get in Touch With Our Attorneys

If you believe your insurance provider has acted in bad faith regarding a valid insurance claim, you need the support of an experienced attorney. Proper and complete documentation is essential in proving a bad faith insurance claim, as this proves the validity of your case and prepares you to meet the unofficial standards set by the court to meet the Pennsylvania Bad Faith Statute. In order to ensure that you receive the full extent of damages in a bad faith insurance claim, our team at Cohen & Riechelson will walk you through the process of seeing your valid insurance claim addressed, help you gather the required documentation to prove your case, and make sure that all financial and emotional distress you have incurred due to your insurer’s bad faith handling of your case comes back to you with dividends.

We handle bad faith insurance claim issues in Langhorne, Fairless Hills, Bensalem, Bryn Athyn, Yardley, Levittown, Doylestown, and other Philadelphia and Pennsylvania areas. Contact us today at (215) 337-4915 for a free and confidential consultation to learn how we effectively protect Northeast Philly from bad faith insurance maneuvers.