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Can I Sue My Insurance Company for Denying Coverage?
Few of us enjoy paying our insurance premiums every month, yet we do so because we understand that catastrophes can happen and we may need a safety net to cover our health, home, and finances in an emergency.
When an insurance company tries to deny or reduce coverage for illegitimate reasons, this is called "bad faith insurance." The law prohibits insurance companies from acting this way, and people who are victimized by acts of bad faith insurance are often able to recover compensation through a civil lawsuit. A Wisconsin bad faith insurance attorney should be the first person you talk to if you think your insurance company is acting in bad faith.
Examples of Bad Faith Insurance
There are many ways insurance companies engage in bad faith with their clients. Some of the most common bad faith insurance acts include:
Claim Denial
Sometimes insurance companies will outright deny payment on a claim. This can be very scary for a person who has recently been seriously hurt in a car crash or who is facing serious financial loss because of damage to their home. Insurance companies provide many reasons for claim denial, but if the denial is not legitimate, insurance companies can be forced to pay out valid claims and punished for bad faith denial.
Delayed Payment
Insurance companies are obligated to provide payment on valid claims. Wisconsin law requires insurers to pay claims within 30 days of being notified of a covered loss and the amount of the loss. Unfortunately, insurance companies will often drag their feet and try to delay payment until the client gives up.
Not Investigating Claims
As with prompt payment, insurance companies are required to quickly investigate a claim and request the information they need to determine whether a claim is valid. If insurance companies rush through an investigation or fail to investigate a claim, they may get inaccurate information and provide lowball settlement offers.
Misrepresenting the Policy Terms
Insurance companies will sometimes lie or misrepresent the law or the terms of a policy, assuming clients will trust the insurance company and fail to take the matter further.
At Gimbel, Reilly, Guerin & Brown, LLP, we help clients recover damages against all kinds of insurance companies for bad faith acts. These companies include:
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Health insurance
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Car insurance, including under/uninsured motorist coverage
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Life insurance
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Excess liability insurance
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Umbrella insurance
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Business insurance
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Homeowners insurance
When is an Insurance Company Allowed to Deny Coverage?
There are some situations in which insurance companies are legitimately allowed to deny customers the coverage they seek. These include, but are not limited to:
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A claim not being filed within the deadline
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A loss being outside of the scope of the insurance coverage
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A lapse in policy or payment
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A policyholder who provides misleading information
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A lack of evidence to support a claim
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Treatment, repairs, or services not being truly necessary
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A policyholder engaging in certain dangerous activities
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Self-inflicted wounds
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Failure to seek treatment or refusal to follow doctor’s orders
That being said, insurance companies are businesses that will try to get out of paying claims if they think they can get away with it. Even if the reason your insurance company has given you for denying your claim sounds legitimate, you should talk to an attorney who can look over your case and determine whether your insurance company is acting in bad faith.
Call our Milwaukee, WI Insurance Bad Faith Attorney Now
You depend on your insurance company to be there for you when you need it most. If you have been a victim of bad faith behavior from your insurance company, learn about your legal options by contacting Gimbel, Reilly, Guerin & Brown, LLP at 414-271-1440. Our team of Wisconsin insurance bad faith lawyers understands how damaging this kind of behavior can be and we fight for every client to get the money they need.
