When an insurance company refuses to honor its obligations under a policy, it may be engaging in “bad faith.” Bad faith claims occur when an insurer wrongfully denies, delays, or underpays a claim. If you find yourself in a situation where your insurance provider is acting in bad faith, you may be entitled to pursue legal action against them.
What Is a Bad Faith Insurance Claim in Missouri?
In Missouri, bad faith claims occur when an insurance company fails to fulfill its obligation to a policyholder. Insurance companies are required by law to act in good faith. They must deal with claims in a fair, honest, and timely manner. When they fail to do so, they are violating their contractual obligations and may be subject to legal consequences.
Examples of bad faith include:
- Denying a valid claim without proper justification
- Delaying the processing of a claim unnecessarily
- Offering an unreasonably low settlement amount
- Failing to investigate a claim properly
- Misrepresenting policy terms or coverage
For instance, if you were in an automobile accident and the other driver’s insurance company was unjustly delaying your claim, you may have a bad faith claim.
What Are the Most Common Types of Bad Faith Claims?
Bad faith claims can arise from various situations. Some of the most common types of bad faith claims include:
- Unfair Denial of Claims. When an insurer denies a valid claim without any reasonable explanation or justifiable cause.
- Failure to Investigate. Insurance companies are required to properly investigate claims. If they fail to do so and delay or deny claims, this may be a violation of their duty of good faith.
- Underpayment of Claims. Insurers may offer a settlement that is much lower than the actual damages incurred. They hope the policyholder will accept the offer. If this is done with the intent to minimize payout, it may constitute bad faith.
- Delay of Payment. Insurance companies may deliberately delay payments or the processing of claims. In some cases, this can be seen as a tactic to frustrate the policyholder into settling for less.
When an insurance company acts in bad faith, it is essential to have an experienced lawyer to advocate for your rights and ensure that you receive fair compensation.
How Can a Lawyer Help With a Bad Faith Insurance Claim in Missouri?
If you believe you are a victim of bad faith insurance practice, hiring a lawyer can improve your chances of a good outcome.
Here’s how an attorney can help:
- Investigation and Evidence Collection. They will investigate your case thoroughly. They will gather evidence and work with experts to build a strong case against the insurance company.
- Negotiation. Experienced attorneys can negotiate with insurance companies. They will fight for a fair settlement on your behalf.
- Filing a Lawsuit. If negotiations fail, an attorney may be prepared to file a bad-faith lawsuit. In Missouri, you may be entitled not only to compensation for your original claim but also to additional damages for the insurer’s bad-faith actions.
- Legal Advice and Representation. We will guide you through the legal process, advise you on your best options, and ensure that your rights are defended.
Having a skilled lawyer can level the playing field when dealing with an insurance company. Insurers may not always be acting in your best interests. When they act in bad faith, a skilled attorney can help.
The Legal Options in a Bad Faith Claim in Missouri
If an insurer is acting in bad faith, Missouri law allows policyholders to pursue compensation.
Some of the legal options include:
- Compensatory Damages. These are the actual damages you suffered due to the insurer’s actions. This can include medical bills, lost wages, and pain and suffering.
- Punitive Damages. In cases of extreme bad faith or malicious conduct by the insurance company, punitive damages may be awarded. These damages are designed to punish the insurer and deter future bad faith moving forward.
- Attorney’s Fees and Costs. If you prevail in a bad faith lawsuit, Missouri law may allow you to recover attorney’s fees and other legal costs.
The goal of pursuing a bad faith claim is to ensure that the insurance company is held accountable. Our personal injury lawyers can help you receive full compensation for your losses. This can include additional damages caused by the insurer’s misconduct.
How Do I Know If I Have a Bad Faith Insurance Claim in Missouri?
You might have a bad faith claim if:
- The insurance company is delaying your claim unnecessarily
- You were denied a claim without a reasonable explanation
- The insurer is offering you far less than what you’re entitled to
- The company is not conducting a proper investigation into the details of your claim
If any of these situations apply to you, it is critical to consult with a qualified attorney. An attorney can review your case and help you determine your next steps. We will help you understand whether bad faith is involved and guide you on the best course of action.
An Experienced Attorney Can Help With Your Bad Faith Insurance Claim
If you believe that your insurance company is acting in bad faith, take action immediately. Schultz & Myers Personal Injury Lawyers is here to help you fight back. Our experienced team is dedicated to protecting your rights and ensuring that you receive the compensation you deserve.
Our team is dedicated to helping you hold insurance companies accountable. We assist our clients in pursuing the appropriate compensation they deserve. In Missouri, insurance companies are legally required to deal with claims fairly and in good faith. We are here to fight for your rights if that isn’t happening.
Contact us today to schedule a free consultation. You can also call us at (314) 444-4444, let us review your case and work to hold the insurance company accountable for its actions.
