Bad Faith Claims

Bad Faith Claims in Atlanta

Your insurance company is a for-profit business – not a charity. Like all businesses, you can expect them to do what’s in the best interest of their bottom line and investors. In most situations, this will also be in the best interest of their policyholders – but not always.

 

A bad faith claim occurs when an insurance company fails to uphold its contractual obligations to handle a policyholder's claim fairly, honestly and promptly. This includes cases where the insurer intentionally or negligently denies, undervalues or delays a legitimate claim, exposing the insured individual or business to unnecessary financial hardships. Bad faith claims may also be justified if your insurance company failed to defend your business against lawsuits or put their own interests above you during the case. 

 

Bad faith claims serve as a crucial safeguard for policyholders, ensuring that insurance companies uphold their end of the bargain.


Examples of Bad Faith Claims

  • Unjust Denial: An insurance company denies a valid claim without conducting a proper investigation or offering a reasonable explanation for the denial.
  • Failure to Defend: If the insurance policy includes a duty to defend the business against lawsuits and the insurer fails to provide or pay for legal defense without justification, this may lead to a bad faith claim.
  • Delayed Payments: The insurer unreasonably delays the processing or payment of a claim, leaving the policyholder without the necessary funds for an extended period.
  • Underpayment: Instead of compensating the policyholder fairly, the insurer deliberately undervalues the claim, leaving the insured with insufficient funds to cover the losses.
  • Failure to Investigate: The insurance company neglects to investigate a claim fully or within a reasonable timeframe, creating unnecessary obstacles for the policyholder.
  • Misinterpreted Policy: The insurer misrepresents the policy terms – possibly intentionally – to avoid paying your claim.
  • Poor Communication: If the insurance company fails to respond to your communications (phone calls, emails, letters, etc.) in a timely manner or neglects to update you on your claim’s progress, they may be acting in bad faith.


Georgia Laws That Affect Bad Faith Claims

  • Georgia Code § 33-4-6: This statute requires insurance companies to act in good faith when handling claims, ensuring prompt and fair resolutions for policyholders.
  • Georgia Code § 33-4-7: Prohibits unfair claim settlement practices, such as misrepresenting facts or policy provisions, and mandates prompt investigation and processing of claims.
  • Punitive Damages: Georgia allows for the recovery of punitive damages in bad faith claims, serving as an additional deterrent against wrongful insurance practices.


Not all state laws work to the insured’s benefit. According to Georgia Code § 33-4-6.2, if an insurer pays a valid claim within 60 days after receiving notice and all necessary documentation, the insurer is immune from a bad faith claim related to that payment.

 

How an Attorney Can Help You Confront a Bad Faith Claim

 

Businesses turn to their insurers during desperate times and often as a last resort. But what can you do when the ally you trust to help you in the worst-case scenario is suddenly working against you? The team at the Law Office of Cameron Hawkins has experience representing businesses in bad faith claims, and we are ready to fight to ensure you’re treated fairly.

 

Our attorneys understand the complexities of bad faith laws and can navigate through legal intricacies to build a strong case on your behalf. We’ll engage in negotiations with the insurance company to seek a fair settlement for your situation, and we are not afraid to take your provider to court if necessary.

Let Our Experience Work For You

 Contact The Law Office of Cameron Hawkins today for more information and receive a free, no-obligation case revaluation.

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It can be difficult to hold insurance companies accountable for a bad faith claim on your own. The skilled attorneys at the Law Office of Cameron Hawkins have decades of experience working with insurance companies to defend policyholders against bad faith claims, and we are ready to fight for your interests.

 

Call 678.921.4225 today to schedule a free case consultation with one of our skilled litigators today.

Bad Faith Frequently Asked Questions

  • What is an insurance bad faith claim?

    An insurance bad faith claim arises when an insurance company fails to uphold its duty to treat a policyholder’s claim with fairness, honesty and reasonable diligence. This duty is inherent in every insurance contract, and when an insurance company neglects this responsibility, it can be held accountable through a bad faith insurance claim.


    There are actually many unique actions or inactions that can fall under the umbrella of bad faith. These could include: 

    • Unjustified denial or coverage
    • Inadequate claim investigation 
    • Unreasonable claim processing delays
    • Failure to defend lawsuits

    Any action or inaction of the insurance company that’s against the policy’s terms or a policyholder’s reasonable expectations may qualify as bad faith. 


  • How do I know if I have a valid bad faith insurance claim?

    Policyholders feel wronged by their insurance companies all the time, but those situations don’t always rise to the level of bad faith. This can be especially true if you’re unhappy with a claim denial, undervaluation or you believe your insurance company didn’t adequately investigate the facts behind your situation. 


    Insurance policies are complicated contracts filled with exclusions and sometimes confusing language. The best way to find out for sure if you have a valid claim is to consult with an attorney experienced in bad faith litigation. The Law Office of Cameron Hawkins specializes in navigating these complex cases, helping you understand your rights and determine the best course of action to hold the insurance company accountable and seek the compensation you deserve.


  • What are some common examples of insurance bad faith?

    Imagine a situation where a homeowner files a claim for roof damage caused by a severe storm, which is a covered peril under their policy. If the insurance company denies the claim without a valid reason or proper investigation, asserting that the damage was pre-existing when it was not, this could be considered bad faith. The homeowner would be justified in pursuing a bad faith lawsuit to seek not only the cost of repairs but also additional damages for the insurer's improper conduct.


    Alternatively, consider a scenario in which a policyholder causes an accident that causes injuries to someone else. Their insurance company decided to fight the claim instead of settling for the policy limit. They go on to lose at trial and the verdict is three times what the policy’s value, meaning the policyholder is left with massive personal liability and out-of-pocket expenses they can’t cover. Depending on the circumstances of the case and the facts that led to the insurance company’s decisions, the policyholder may be justified in bringing a bad faith claim. 


  • What should I do if I think my insurance claim was handled in bad faith?

    1. Your first step should be to review your policy on your own and see if you can reach a fair outcome by escalating your issues up the chain of your insurance company. If you think a claims adjuster made a mistake, talk to their manager. Be sure to have all relevant documentation and evidence gathered so you can clearly justify your perspective when you request a detailed explanation of their decision-making rationale. 
    2. If the insurance company doubles down, you find the formal complaint channel with the insurance company. If this still doesn’t rectify the situation, you should strongly consider filing a formal complaint with Georgia’s Office of Commissioner of Insurance (you can find instructions on how to do so here).  
    3. At this point, it’s likely in your best interest to consult with a bad faith lawyer. The Law Office of Cameron Hawkins in Atlanta, GA, has extensive experience handling these types of cases and can guide you through the process, helping you understand your rights and the best way to proceed.

  • What types of damages can I recover in a bad faith insurance claim?

    In a bad faith insurance claim in Georgia, you are generally eligible to recover the full value of your initial claim, consequential damages that resulted from the insurer’s breach of contract and potentially attorney's fees and punitive damages. 


    Punitive damages can be particularly significant, as they are meant to punish the insurer for their egregious conduct and deter similar behavior in the future. The specific damages available will depend on the details of your case, which an experienced attorney can evaluate.


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