Insurance Claims - Bad Faith Insurance Claims

Automobile insurance, homeowners insurance, disability insurance, casualty insurance all provide coverage in the event of a loss (such as damage caused by an accident). But let's face it. Insurance companies are in business to make profits; they're not in business to give away money. But they collect the premiums and they are obligated to pay the full amount of the loss if the claim is covered.

Insurance companies often throw up many roadblocks to valid claims. A preliminary defense might be to challenge coverage in the first place. Another tactic is simply to delay processing the claim; if the injured person can be frustrated enough, maybe he won't go through with the claim, or delay filing it in court until after the statute of limitations expires. The most common and vigorously followed defense is to offer less than is reasonable to settle the claim.

Fortunately in Massachusetts, statutes obligate insurance companies to deal in good faith in handling claims. Good faith is defined in several ways. For example, an insurance company may not delay in responding to claims, nor may it misrepresent pertinent facts or policy provisions relating to the claim, nor may it deny a claim without conducting an appropriate investigation, nor may it fail to settle a claim under one portion of a policy to try to force a better settlement of a claim under a different portion. One very important part of this law requires insurance companies to make a fair offer of settlement once liability becomes reasonably clear.

Violating these obligations also violates the Massachusetts Consumer Protection Act. So, a claim can be brought directly against the insurance company by anyone harmed by the violation of these laws. For example, if you're hurt in a car accident and the other driver's insurance company offers an unreasonably low amount to settle your claim, you may also have a separate claim directly against that insurance company. If that claim is successful, the court can award two to three times the amount in the first claim, as well as attorney fees.

This type of claim is called a bad faith insurance claim. This office is particularly experienced in such claims.

The Law Offices of Hans R. Hailey are located in Boston and Westwood, Massachusetts. Insurance lawyers from the Law Offices of Hans R. Hailey frequently represent clients in bad faith insurance claims in Boston and throughout Massachusetts.