Like any other business, insurance companies want to protect their profits. There’s no problem with this desire – until it starts to interfere with insurers’ service towards policyholders. When insurance companies collect premiums but use unsavory tactics to avoid paying out valid claims, they are acting in bad faith. This practice is illegal and can be grounds for a bad faith insurance lawsuit.
Any time two or more individuals or entities sign a contract, all parties are agreeing to treat each other honestly, fairly, and in good faith. This is called the implied covenant of good faith and fair dealing, and violating it constitutes bad faith.
Some ways that insurance companies act in bad faith include:
Most bad faith claims are filed under common law, so plaintiffs must prove that their policy benefits were withheld and that they were withheld without a valid reason. Some states, like Louisiana, have special statutes to protect policyholders for insurance bad faith. Due to Hurricane Katrina, for example, Louisiana’s bad faith statutes were amended to include stiffer penalties and sanctions against insurance carriers who mistreat their customers.
Under Louisiana’s bad faith statutes, your insurance company should be responsible for all attorneys’ fees.
Like the city and state we operate out of, our legal team does not stand for insurance bad faith. Our lawyers are experienced in insurance disputes and know how to get you the benefits you need without filing a lawsuit. If your insurer continues to be uncooperative after we work with them, we also aren’t afraid to take big insurance companies to court. To increase your chances of getting the benefits you paid for, along with compensation that accounts for your inconvenience, look no further than The Voorhies Law Firm.
Contact The Voorhies Law Firm to schedule your free case evaluation with one of our New Orleans experienced attorneys.