What You Should Know About Insurance Bad Faith in Personal Injury Cases
February 18, 2025
Whether you were injured in a car accident, suffered a slip and fall, or were hurt in some other way, the aftermath of the incident can feel overwhelming. The entire matter becomes even more complicated when insurance bad faith is added to the equation. Insurance companies are supposed to honor the terms of the policies they write and pay to cover medical bills, lost wages, and other liability-related claims when necessary. Unfortunately, insurance companies are notorious for trying to underpay or avoid paying legitimate claims. This conduct, known as insurance bad faith, can leave you feeling helpless and uncertain about your future.
The good news is that you have rights, and Wapner Newman is here to fight for you. Here’s what you need to know about bad-faith insurance practices.
Do Attorneys Assist With Insurance Bad Faith Claims?
Yes, legal teams can assist with bad-faith insurance incidents. Our experienced lawyers will review your rights as a policyholder and determine whether the insurer is failing to honor the terms of your agreement. We can provide valuable guidance and help you fight against insurance companies.
What Is Insurance Bad Faith?
Insurance bad faith occurs when an insurance company fails to honor the terms of its policy with you, the policyholder. This can manifest in a number of ways, such as an unreasonable denial of benefits or undue delays in processing claims. Sometimes, the insurance company will cut corners during the investigation, which can lead to underpaid or denied claims. Regardless of the reason, bad faith personal injury claims can have lasting consequences on you and your loved ones. That’s why it’s vital for you to recognize signs of insurance company misconduct and enlist experienced legal representation to enforce your rights.
Recognizing Bad Faith in Personal Injury Claims
Some common bad-faith insurance practices that you should be aware of include the following:
Unreasonable Denial of Claims
An unjust denial of personal injury claims occurs when your insurance company rejects a valid claim without a valid reason. Sometimes, insurance companies try to exploit policy loopholes or continuously request additional documentation. However, if you file a valid claim in accordance with your policy, the insurance company is legally bound to uphold its contract terms and conditions.
Delaying Payment
Delaying payment is another form of insurance bad faith in personal injury cases. The insurance company often resorts to stall tactics to avoid timely payment. Sometimes, the goal is to discourage you so that you will become less responsive to follow-up requests. Don’t give in. Keep a detailed record of every interaction and seek legal representation if the insurance company stonewalls you.
Inadequate Investigation
Insurance company misconduct may include an inadequate investigation into your injuries. Failing to thoroughly assess the claim can result in denials or underpayment. Underpaid claims will leave you without the financial resources necessary to cover your medical bills and lost wages.
Misrepresentation of Policy Terms
The insurance company and its representatives are legally obligated to provide you with accurate information about your coverage. If they misrepresent your policy terms to deter you from filing a claim, it is a form of insurance bad faith. Intentional misrepresentation can also lead to severe penalties for the insurance company and may enable you to pursue additional compensation.
Do you believe that you are encountering insurance bad faith while dealing with a personal injury claim? If so, call (215) 569-0900 and book a free consultation with Wapner Newman today.
Legal Protections Against Insurance Bad Faith in Pennsylvania
According to 42 Pennsylvania Consolidated Statutes (Pa.C.S.) § 8371, Subchapter G, policyholders are entitled to special damages if the insurer behaves in bad faith toward them. If you are the policyholder and sue your insurance company for acting in bad faith, the court may impose several penalties. For instance, they could charge interest on the claim account, which is calculated at the prime rate plus 3% from the date you made the claim. The court could also order the insurer to pay the attorneys’ fees and court fees you incurred while pursuing the bad-faith claim. These provisions aim to hold insurance companies accountable and deter them from engaging in bad-faith practices.
If you are dealing with a personal injury and going up against an insurance company acting in bad faith, Wapner Newman can help. Our attorneys are experienced in bad faith personal injury claims and have recovered tens of millions of dollars for personal injury clients.
Steps to Take if You Suspect Bad Faith
If you think that you are facing a personal injury claim denial due to bad faith, you should take the following steps to protect yourself:
Document Everything
You need to create detailed records of every interaction with the insurance company. Save emails, letters, and any other written or typed communication. Make a note of the dates, times, and names of representatives you’ve spoken with. If anyone you talk to provides you with a reference number, write it down. You will need as much evidence as possible if you seek legal representation. The attorneys at Wapner Newman can use your records of past communications with the insurance company to demonstrate your efforts to resolve your claim. This evidence can also help prove that the insurance company is acting in bad faith.
Review Your Policy
Any time you have to file an insurance claim, you should review your policy documents. Pay close attention to filing requirements, payout amounts, and any exclusions. Your claim should be valid if your incident is not excluded and you followed all filing requirements established by your insurer. Your policy documents should also outline the insurance company’s responsibilities when responding to a claim, such as conducting an investigation or sending an adjuster. Identify any that they have failed to adhere to.
Consult a Legal Professional
Contact an experienced legal team like Wapner Newman. Our attorneys have handled numerous bad-faith insurance cases and are here to enforce your rights. Don’t let the insurance company bully you out of the money you deserve. Fight back with Wapner Newman.
How Wapner Newman Can Assist You
At Wapner Newman, we understand that an unfair insurance claim denial can be incredibly frustrating and cause you additional financial hardship. Our dedicated team is committed to standing up to insurance companies that fail to uphold their obligations. We’ll work tirelessly in our pursuit of the benefits you’re entitled to and will hold the insurer accountable for its misconduct.
Call Wapner Newman at (215) 569-0900 to schedule a free consultation.