Bad Faith Claims

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. 

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.

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. 

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.

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.