Locations in Sioux Falls & Mitchell

Bad Faith Insurance Claim Lawyer

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Your first consultation is always free.

As a policyholder, you pay insurance premiums each month to have peace of mind that you’re covered in the event of an accident. If you or someone on your policy is injured in an accident or suffers any loss covered by your policy, you have a reasonable expectation that you’ll receive compensation.

While most insurance companies honor agreements with policyholders, some adjusters act in bad faith or without good cause to deny benefits. If your insurance company is refusing to pay your claim without good reason, you may have a valid claim against the insurance company.

Has your claim been unfairly denied by your insurance company? While these cases are complicated, the team of insurance lawyers at Alvine Law Firm, LLP is here to fight for you.

Send us a message.

What is a Bad Faith Claim?

A bad faith claim isn’t the same as a denied claim. Insurance companies can legally deny a claim if there is an adequate reason, as outlined in your policy, to do so. In this instance, there’s no wrongdoing or bad faith.

However, if your insurer unreasonably denies your claim or withholds benefits without good reason, they may be acting in bad faith.

Just as you must fulfill your obligation by paying for your insurance premiums each month, insurance companies also have certain duties. These include:

  • A duty to investigate
  • A duty to uphold the policy
  • A duty to defend policyholders
  • A duty of good faith and fair dealing

Insurance companies must always act in good faith in any dealings or negotiations with their own policy holders. This is implied in all insurance agreements to prevent bad faith.

If your insurer has failed to meet this duty or any other duty, you may have a case for being compensated for damages. This may result in a damage award above and beyond what your insurance coverage states

Bad Faith Examples

Filing an insurance claim is a confusing and often long-winded process. Even if your insurer is acting in good faith, it’s extremely hard to follow negotiations.

However, if your claim has been denied or benefits withheld for no good reason, you may have a case for bad faith. Some common bad faith tactics include:

  • Denying coverage without a thorough investigation of your claim
  • Failing to give a clear, written explanation for denying the claim
  • Ignoring communication attempts
  • Taking too long to determine coverage
  • Refusing to negotiate
  • Intentionally dragging out negotiations to apply statute of limitation laws
  • Using inaccurate medical or legal terms to deny the claim
  • Low-ball settlement tactics.

However, it’s important to note that even if your insurance adjuster has used one of these tactics, bad faith isn’t automatically assumed. In court, it must be proven that the insurance company failed to fulfill its obligations to you, the policyholder.

This is why it’s crucial to have the right legal team to analyze your case to determine if your claim was unreasonably denied. The team at Alvine Law Firm, LLP has decades of experiencing going against big insurance companies and dealing with insurance disputes.

If you have a case, you can trust us to get the compensation you deserve.

Schedule a Consultation Today

If you believe your insurance claim was denied in bad faith, contact our team today. We’re committed to helping our clients get the justice they deserve.

Call our office today at (605) 275-0808 to schedule a free consultation. 

Alvine Law Firm, LLP Resources

Learn about your rights and how we approach cases here at Alvine Law Firm, LLP.

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