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Have you ever been deceived by an insurance company acting in bad faith? If you have, then you’re not alone. Many people have had to go through similar experiences as well. Luckily, there is help available.

You deserve to know what your rights are, and the lawyers at Wynperle Law can assist you when suing an insurance company for bad faith. Protect yourself, and your family as well, with the team at Wynperle today.

Let’s get started.

Insurance Companies: Not Always on Your Side

When you have an insurance claim, you expect your insurance company to do right by you. After all, they’re there to offer coverage when things go wrong and make sure you get the money you need to repair any damage you experience, getting you back on your feet after a personal injury claim.

However, your insurance company may not always be so helpful. They may deny your claims without a good reason, or refuse to pay you the whole amount of what your policy says they owe.

 You don’t have to accept that they won’t pay their dues. If your insurer fails in paying claims, you can sue them for bad faith and get the money you deserve from your insurer according to insurance law.

What Are Some Situations Where an Insurance Company May Act in Bad Faith?

Bad faith occurs when an insurance company does one of these things:

  • Breaches their contract with you by avoiding paying for a claim or delaying payment for a claim for no legal reason
  • Misrepresents the coverage they provide
  • Fails to investigate your claim
  • Claims they did not receive your bad faith insurance claim form on time when they did
  • Does not return your phone calls or emails regarding your bad faith insurance claims
  • Deny claims or make it difficult for policyholders to collect
  • Gives a settlement amount for your claim that is below the promised amount in your insurance policy (or below what is fair to you the policy holder).

Of course, not every situation where an insurance company “acts unfairly” counts as bad faith. For instance, if your insurance agent has a good reason not to pay out on your claim (such as finding evidence that you used drugs right before the accident or having unreasonable demands), it wouldn’t count as bad faith.

What Should I Do If I Suspect My Insurance Company Is Acting in Bad Faith?

If you suspect your insurance company is engaging in bad-faith behavior, there are some things you can do. First and foremost, read your insurance policy documents and know what is covered and what is not. If it’s unclear whether or not something is covered, ask for clarification from your insurer.

However, if you still think your insurance company is acting in bad faith, contacting an attorney may be your best course of action. Your attorney can help you to decide if you have an airtight case, and can also protect you during the bad faith insurance claims legal process.

What can you do to help yourself?

Some things you can do to help build a strong case against bad faith insurance companies include:

  • Keep detailed records of all correspondence with your insurance company. This might include phone calls, paper mail, emails, text messages, and so on. Be sure to keep track of who contacted you and when.
  • Communicate with your insurance company using the same channel each time. If you email them about the matter, always email them for further updates. If you call their customer service line, continue calling their customer service line for further updates.
  • Employ a bad faith attorney to help you through the process of potentially suing an insurance company for bad faith. This may include requesting specific documents from the insurance company as well as sending notices demanding that they act in good faith toward you as their client.

Can I Sue My Insurance Company for Acting in Bad Faith?

Yes.

In most cases, you’ll be able to file a lawsuit against your insurance company if they act in bad faith. However, it is possible to waive your ability to sue the company by signing a contract that includes such a waiver. If you have not signed such an agreement, you may be able to sue the insurance company for damages caused by their bad faith.

When suing an insurance company for acting in bad faith, it is recommended that you hire a lawyer to help you with your case. Most provinces require that lawsuits against insurers for bad faith be filed within two years.

How Much is My Bad Faith Insurance Claim Worth?

In most cases, the value of your bad faith insurance claim depends on the size of the original settlement. In other words, if your insurance company was supposed to pay you $50,000 but refused to do so, then your bad faith claim could be worth up to $50,000 (plus interest).

In addition to this base amount, your bad faith claim may also be worth:

  • Emotional distress damages
  • Punitive damages designed to punish the insurance company for its actions
  • Costs associated with filing a lawsuit

Steps to Take When Suing Your Insurance Company for Bad Faith in Canada

The first and only step you need to take is consulting a lawyer. And when it comes to insurance claims, Wynperle Law is the best firm in the industry. We’ve got a team of attorneys who have recovered millions of dollars from insurance fraud, and we’ve been doing it for decades.

It’s not easy to stand up against big business (even if you have a valid claim), which is why we’re there to help you fight back. We’ll look at your policy, review the paperwork, and work with you to get all the money you’re entitled to. Let us do the work for you so that you can focus on healing and moving forward with your life with a free consultation.

If you’re looking for a trusted firm devoted to protecting your rights as a consumer, get in touch with Wynperle Law today for your free consultation.

By Published On: May 17th, 2022

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