Legal Strategies for Dealing with Insurance Bad Faith in Personal Injury Cases

If another party negligently harms you, filing a personal injury claim can help you recover the financial compensation you need for your losses. While some personal injury cases will be settled through the courts, most tend to settle outside of court. Insurance companies are expected to treat claimants fairly and in good faith. This does not always happen, though, and as a result, claimants who have had to deal with insurance in bad faith may be able to take legal action. Pennsylvania's bad faith insurance laws say that insurance companies are supposed to act in good faith concerning their policies and their claims process.

If you have been victimized by wrong dealings by an insurer in Pennsylvania, then you can speak to a Philadelphia personal injury lawyer at Edelstein Martin & Nelson, LLP.

Handling Bad Faith Insurance in Pennsylvania

Buying insurance is usually done to meet the requirements set by lawmakers, such as buying car insurance to legally drive a car. Or, it is done voluntarily, to act as an extra layer of security should something unforeseen happen. When one purchases insurance, the agreement is that they will pay their premiums in exchange for fair treatment and coverage should certain events take place that would trigger one’s policy provider to act. When an insurance company violates the required duties and responsibilities they have to their insured, they may be acting in bad faith and they can be held accountable.

Some ways that an insurer may act in bad faith could be to delay the processing or investigation of a claim for an unreasonable amount of time or for refusing to pay when they are obligated to. Insurance companies must adhere to the terms of the policies they have with their insured and respond appropriately to valid claims that are filed paying the entirety of what a policy covers.

Under Pennsylvania insurance bad faith laws victims of bad faith insurance have the right to file a lawsuit and recover financial compensation from their insurer. Not all states have laws that give the people this right. Pennsylvania does, but it wasn’t that long ago that it was not possible to sue an insurance company for bad faith. In fact, it was not until 1990 that Pennsylvanians were awarded this right under the law. Now insurance companies can be held responsible for their misdeeds and bad faith actions to claimants.

A successful claim against an insurance company can recover compensation for such damages including and exceeding the policy limits. But that is not all. They may also be ordered to pay other damages such as emotional distress, penalties, economic losses, punitive damages, and more.

To prove a bad faith claim, it must be shown that:

• The denial of benefits was unreasonable or arbitrary
• The insurer had malintent and motive to act in bad faith
• The insurer was negligent in handling a valid claim which is why they denied it

Speak with an Attorney at Edelstein Martin & Nelson, LLP

If you have questions about a claim denial or the insurance company's actions that you feel are inappropriate, the insurance company may have acted or is acting in bad faith. You could be owed financial compensation for their poor behavior and business practices. 

Call Edelstein Martin & Nelson, LLP at (215) 731-9900 to schedule a free consultation with a Pennsylvania insurance bad faith lawyer to learn more about what you can do to recover financial compensation when you were harmed by bad faith actions made by your insurer.