When you faithfully pay your insurance premiums, you expect the insurance company to hold up its end of the bargain. When insurers engage in bad-faith tactics to avoid paying claims, those harmed by their actions have legal rights.

If an insurance company is refusing to fairly settle your claim, delaying the process, or flat-out denying you payment for reasons you feel are unreasonable, you may have grounds to file a bad-faith insurance claim. A Madison bad faith insurance lawyer with LawtonCates could help you seek compensation and hold the insurance company accountable. Contact us to learn more during a free consultation.

What is Insurance Bad Faith?

Insurance bad faith involves unreasonable attempts by the insurance company to delay, deny, or undervalue your insurance claim.

Legally, insurance bad faith goes beyond a breach of contract, which is the failure of the insurance company to fulfill the terms of a policy. Insurance bad faith claims involve unfair, deceitful, or harassing tactics. These tactics may include avoiding clients, making low-ball offers, or applying undue pressure to clients to get them to settle.

Common Examples of Insurance Bad Faith in Madison

It can be challenging to identify when an insurer is acting in bad faith. Common examples of bad-faith insurance practices include:

  • Lowballing – The insurance company is not supposed to try to offer you as little payment as it can. It is supposed to evaluate your losses and compensate you fairly. However, insurers often use initial low-ball settlements as a way to reduce their financial obligation. Companies may offer you much less than your claim is worth in the hopes you will accept a quick payment over a prolonged battle to get what you owe.
  • Delaying payments – Wisconsin law mandates the timely payment of insurance claims. The law states that insurers must pay most claims within 30 days of when the policyholder notifies them of a covered loss and the amount of the claim. Furthermore, insurance companies cannot slow down the claims process for no reason.
  • Unreasonably denying payments – Insurance companies cannot deny valid claims without a justifiable reason.
  • Failing to investigate – Insurers cannot deny your claim without first investigating your losses.
  • Failing to uphold industry standards – Insurers must follow industry standards when dealing with clients. Insurance companies cannot misrepresent a policy, make false statements, avoid client phone calls and other communications, or make excessive demands on a policyholder.

If you believe an insurer dealt with you in bad faith, our Madison insurance bad faith lawyers could review your case and discuss your legal options.

Legal Rights of Policyholders in Wisconsin

Policyholders have legal rights, and they can seek recourse if the insurance company violates them. These rights include:

  • The right to prompt payment – You have the right to prompt payment of your claim, usually within 30 days of notifying the insurance company about your losses.
  • Rights regarding non-renewals and mid-policy cancellations – According to the Wisconsin Office of the Commissioner of Insurance, if an insurer does not want to renew your policy, they must notify you at least 60 days before it expires. Insurers also usually cannot cancel your policy mid-term if you are current on your premium payments.
  • Anti-discrimination rights – Insurers cannot refuse coverage or deny your claim on the basis of your age, sex, race, creed, color, national origin, marital status, or occupation. Insurers also cannot deny you based on a physical disability, your past criminal record, sexual preference, or moral character.
  • The right to seek compensation for bad-faith claims – You have the right to seek compensation if you are the victim of a bad-faith insurance claim. You could seek a settlement for the amount of your claim, out-of-pocket expenses incurred due to the claim delay or denial, emotional distress caused by the ordeal, and your attorney fees. Our bad faith insurance claim lawyers could tell you more about the money you may be owed.

How to File an Insurance Bad Faith Claim

Our bad-faith insurance claim lawyers could review your insurance policy and the tactics used by the insurance company to determine if you have a bad-faith insurance claim. If you have grounds for legal action, we could file your case in civil court.

You must take legal action within the statute of limitations. Our attorneys in Madison could help you act before it is too late.

Benefits of Hiring a Madison Insurance Bad Faith Lawyer

Bad-faith insurance claim cases can be complex. Our lawyers could use their consumer law experience to gather evidence and build your case. We could also represent you in all of your dealings with the insurance company, which can level the playing field for you.

Our Madison insurance bad faith lawyers are passionate about protecting consumer rights, and we will aggressively seek compensation on your behalf.

Why Choose LawtonCates for Insurance Bad Faith Cases

LawtonCates has represented clients in Wisconsin since 1958. Our law firm takes a personal approach to every case, and when you work with us, you get service and support from a compassionate and experienced legal team. We also have a reputation for taking cases to trial and not backing down, so you know we will see your case through to the end.

As one client testimonial says:

After trying to deal with an insurance company personally after a car accident i chose Terrence Polich to represent me. I had some prior health concerns that were exacerbated by the accident. The firm always listened to my concerns and agreed i wasnt being compensated fairly. The process moved along quickly after treatment and am happy i chose lawton and cates!

Our Madison insurance bad faith lawyers will do everything possible to make seeking compensation as easy and stress-free as possible for you. You will never be just a claim number, and we will treat you with the respect you deserve.

Steps to Take if You Suspect Insurance Bad Faith

If you suspect an insurance company acted in bad faith, you should take the following steps:

  • Review your policy – Double-check the terms of your policy to determine what obligations the insurance company has to you.
  • Document everything related to your claim – Keep a record of your communications with the insurance company. Save all of the documents involved in the claims process.
  • Ask for reasons for delays or denials in writing – Request that the insurance company provide you with a reason for its actions in writing. This document will be important evidence for your claim.
  • Do not accept the insurance company’s offer – If you think you are being treated with bad faith, do not sign a settlement agreement.
  • Speak with an attorney – Reach out to our lawyers to learn more about your rights and how to take action.

Contact Our Madison Insurance Bad Faith Attorneys for Help

If your own insurance company refuses to treat you fairly, you have rights. You do not have to fight bad-faith insurance claims alone. You can enlist the help of our Madison insurance bad faith attorneys, who can advocate for you.

We serve clients on a contingency fee basis, so you do not pay any attorney fees unless and until we recover compensation for you. Contact LawtonCates today to get started with a free consultation.