Insurance Companies Must Negotiate in Good Faith with Claimants
Typically, when an injury accident arises out of negligence, an insurance company is used to obtain a financial settlement. Although insurance companies are not normally interested in paying out fair settlements and helping claimants get the money they deserve, it is expected and required that they engage in “good faith” settlement negotiations. In fact, it is not only expected, it is the insurance company’s legal obligation to do so.
If an insurance company has mistreated you or you believe they have not negotiated in good faith, then you may be able to hold them accountable for their misconduct. A bad faith insurance claim can be filed, and it may help you recover the costs of your claim and potentially additional punitive damages.
The bad faith insurance lawyer at Monaco Law PC can assist you with a bad faith insurance claim. Call today to learn more.
What Constitutes Good Faith Negotiations?
It is the insurance company’s job to evaluate your claim and determine if it is appropriate to pay your damages and, if so, how much should be paid to you. When claims are made for extensive damages, the insurance company has to decide if paying you the maximum coverage amount is justified. To make these decisions, the insurance company will thoroughly investigate a claim and review all evidence available.
An insurance company that tries to delay a settlement, refuses to offer a reasonable settlement, denies payment outright, or engages in other unjustifiable practices may be acting in bad faith. Bad faith negotiations can be remedied through legal action.
It is important for insurance companies to look out for their bottom line and make money because they are a business. However, since they collect premiums, it is their duty to also protect their policyholders, and when they fail to do this, they can face repercussions, and they should. Working through the claims process can be incredibly stressful and financially and personally costly to claimants. This is why the law and judges take it seriously when insurance companies do not meet their obligations and take advantage of claimants.
By honestly evaluating claims, responding to claimants’ settlement demands in a timely manner, and offering full and fair settlements, insurance companies in New Jersey are upholding their obligations to claimants and engaging in good faith.
Speak to a New Jersey and Pennsylvania Insurance Bad Faith Attorney Today
Bad faith cases can result from issues with general liability, health coverage, commercial insurance, and much more. If believe that you were not treated properly by the insurance company and they were behaving in bad faith negotiations, you may speak with an attorney at Monaco Law PC by calling (609) 277-3166 for our New Jersey office and (215) 546-3166 for our Pennsylvania office to discuss your case today.
We are a New Jersey and Pennsylvania insurance and bad faith law firm serving Atlantic County, Bucks County, Burlington County, Cape May County, Camden County, Chester County, Cumberland County, Delaware County, Gloucester County, Mercer County, Middlesex County, Monroe County, Montgomery County, Philadelphia, Ocean County, Salem County, Susquehanna County and all of New Jersey.
Source:
nj.gov/dobi/division_insurance/index.htm
