You pay your insurance premiums each month with the assumption that your provider will treat you fairly when you file a claim. As most of us know, however, insurance companies do not have the best track record of acting in good faith with their policyholders.
If you filed a valid claim after an accident that your insurance policy should cover, but your insurance company denied it anyway, contact our lawyers immediately. We can help hold your insurance company responsible by filing a bad faith lawsuit against them. Georgia law places specific duties on insurance companies to resolve legitimate claims in good faith. If they gave you no reason for denying your claim or intentionally misrepresented your policy, you can sue to recover the compensation they should have paid and more.
Contact Rice, Murtha & Psoras at (470) 287-3070 for a free case assessment with our Georgia bad faith insurance lawyers.
Can I File a Lawsuit Against My Insurance Company for Denying My Claim in Georgia?
Have you recently filed an insurance claim with your carrier in Georgia, only to be subject to an unjust denial? Does it feel like your insurance provider is always unavailable when you really need the compensation you filed for? If your insurance company seems to be ignoring or refusing to uphold the terms of your policy agreement, you might have a case for a bad faith insurance lawsuit against your provider.
According to O.C.G.A. § 33-4-7(a), insurance providers are required to act in “good faith” when dealing with their policyholders and assessing legitimate claims. “Bad faith” in insurance happens when companies deny valid claims, even when policyholders have maintained their payments and are entitled to coverage. When a Georgia insurance company acts in bad faith, policyholders can file a bad faith lawsuit.
Compensation from a bad faith insurance claim can provide you with the coverage that you should have originally received, along with any additional costs and losses incurred because of the insurance provider’s bad faith actions. If you suspect that your insurer is not dealing with you fairly, our Georgia bad faith insurance attorneys can assess your damages and hold them accountable. Insurance companies typically have teams of lawyers at their disposal, but our skilled legal team can level the playing field to hold them accountable.
Is Bad Faith and Breach of Contract the Same When My Insurance Denies My Claim in Georgia?
While the two are closely related, bad faith and breach of contract are two distinct claims. However, there is a great deal of overlap since much of the same conduct will constitute both.
When an insurance company takes actions to disrupt a claim or defraud a claimant intentionally, it is considered an act of bad faith. On the other hand, a breach of contract occurs when an insurance company fails to adhere to the terms of your policy or violates the agreement in any way. Typically, bad faith claims involve unethical conduct on the part of the insurance companies, while breach of contract claims arise when these companies fail to fulfill their obligations under your agreement.
Many actions, such as not providing a claimant with the compensation they rightfully deserve under their policy, can often be used to substantiate both types of claims. Denying compensation when a policyholder has a legitimate claim is not just unethical; it also represents a breach of the contract between the policyholder and the insurance company.
Claimants often find themselves uncertain about whether to pursue a claim against an insurance company for bad faith or breach of contract. That is why our attorneys are here. We will thoroughly investigate your claim and the actions of your insurance company, helping you decide the best course of action after a wrongful denial. In most cases, we will file both claims in the same lawsuit. We can always withdraw a claim later if the evidence supports one more than the other.
What Damages Can I Recover in a Georgia Bad Faith Lawsuit Against My Insurance Company?
The compensation you can recover when your insurance company denies your claim in bad faith can be considerable. The state has an incentive not only to punish the offending insurance company but also to make them an example to other insurance companies that might try the same tricks on their policyholders in the future. As such, you are often entitled to damages that cannot be recovered in other types of lawsuits.
According to § 33-4-6(a), your insurance company has 60 days to pay your covered losses or show good faith reasons for denying the claim. If the insurance company denies the claim in bad faith or allows the 60 days to pass without rendering a decision on the claim, affected policyholders can file a lawsuit. If successful, they will be awarded the original compensation they requested in the contested claim, plus up to 50% of the claim’s value or $5,000, whichever is greater. While not much, it is some measure of punishment for the insurance company’s bad faith conduct.
Sometimes, an insurance company will pay after the 60-day period in the hopes that your complaints will cease. Fortunately, they cannot undo their mistake, and making good on the claim after 60 days will not impact your compensation if your lawsuit succeeds.
It would also seem unfair for you to have to pay for legal services you would not have needed had it not been for your insurance company acting in bad faith. Thankfully, the law directs offending insurance companies to pay any reasonable attorney’s fees to victims of bad faith. However, attorney’s fees will be fixed by the reasonable value of legal services in that locality and the time spent on the case based on the legal and factual issues. Ultimately, the court has the discretion to increase or decrease an award for attorney’s fees.
Contact Our Bad Faith Insurance Attorneys in Georgia Today for Help with Your Claim
Call (470) 287-3070 for a free case evaluation with our Georgia bad faith insurance lawyers at Rice, Murtha & Psoras today.