What is insurance litigation? If you are coming across this term for the first time, you might need an attorney to help you get the compensation you deserve.
You have many insurance policies to protect you against a wide variety of unlucky circumstances. Your car insurance protects you in case someone crashes into you. Your homeowners insurance pays out when your home is damaged in a storm or someone gets hurt on your property. The reason you pay your premiums–which can be quite expensive–in full and on time is that you expect the insurance company to hold up their end of the bargain.
Unfortunately, that doesn’t always happen, and without legal action against unfair practices, you could be looking at massive costs. Insurance litigation can help you fight back.
What is insurance litigation?
Insurance litigation is the legal process by which insurers and policyholders dispute the meaning and interpretation of an insurance policy.
From the policyholder’s perspective, insurance litigation is an avenue to dispute a denied claim, an underpaid claim, or bad faith insurance practices designed to limit the amount of a settlement. Insurance providers owe their policyholders a certain standard of care. Most policyholders expect the insurance company to meet the obligations set out in the policy for valid claims, as the policyholder has done by paying their premiums and deductibles.
When the insurance provider fails to do so, the policyholder can retain an attorney to dispute the outcome. If negotiations with the insurer are unsuccessful, insurance litigation–that is, filing a lawsuit–is the next step.
Are there different types of insurance litigation?
In some cases, the insurance company may be acting in bad faith to delay or prevent a fair settlement from being reached. Some examples of bad faith insurance practices include failing to notify the policyholder of critical information about their claim and failing to conduct a proper investigation of the claim.
In other cases, the insurance provider may deny a valid claim, seek to underpay it, or refuse to negotiate a settlement.
When is it my best option?
Insurance litigation is a legal option that many policyholders fail to take advantage of when it is their best option. Some may not want to get caught up in legal proceedings, while others may not even realize that they have a case. The easiest way to determine if litigation is your best option is to find out if you have suffered any damages as a result of the insurance company’s actions. These may include the denial or underpayment of a valid claim, bad faith insurance practices that result in added costs, or further damage occurring because of the denied or underpaid claim.
It is impossible to know whether insurance litigation is a good option unless you speak to an attorney about the details of your case.
What is insurance litigation and should I consider it? If you are still unsure whether insurance litigation is your best option, you should speak to an experienced attorney. At RRBH Law, we are committed to fighting for our clients’ rights. Let us help you do everything to get a positive outcome. Contact us today for a free case evaluation.