Bad Faith Insurance Attorney

Insurance Bad Faith Lawyers Holding Insurance Companies Accountable for Unfair Settlements or Wrongful Claim Denials in Alabama, Washington State, and Throughout Texas

Insurance is supposed to provide crucial protection when things go wrong. Increasingly, claimants and policyholders are finding that their insurers delay or deny claims and otherwise fail to meet the obligations they owe their policyholders. Although you hoped your insurance claim would be straightforward, the insurer’s actions have made it clear that you’re going to need the professional support of a bad-faith insurance attorney. 

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At Johnstone Trial Law LLC, we refuse to sit by and watch as insurance companies engage in underhanded or unlawful practices. We help real people stand up to these corporations and prevent policyholders from being taken advantage of by the companies they trusted to protect them. 

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Taking legal action begins with a free consultation with a respected insurance bad-faith lawyer. Serving clients throughout Alabama, Washington State, and Texas, our firm is ready to review your case against an insurance company thoroughly. We can even represent you throughout all stages of the legal process without charging upfront fees. Contact us today to find out how we can help you fight for the benefits you deserve. 

How Insurance Is Supposed to Work—and What Happens When It Doesn’t

When a policyholder purchases insurance of any kind—from homeowners and auto insurance to disability insurance, life insurance, and even health insurance—they enter into a contract with the company. The policyholder agrees to pay regular premiums. In exchange, the insurance carrier agrees to pay the specified benefits if a covered event occurs.

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In many cases, it’s in both parties’ best interests if the policyholder never actually has to use these benefits. However, knowing that you’re protected in the case of an auto accident, a house fire, a disabling injury, an unexpected death, or any other such event provides policyholders peace of mind.

 

An insurer’s bad faith conduct can shatter that peace of mind. When you most need help—in the form of benefits you’ve already paid to have, potentially for years—the protection you thought was promised to you suddenly falls through. 

An insurance policy could be the only thing standing between your family and financial ruin in the case of a covered event you can’t control, like a loved one’s untimely death, an unpredictable illness or injury that prevents you from working, or a fire or catastrophic leak that destroys your home. Finding out that receiving the benefits you’ve paid for is about to become an uphill battle is more than frustrating. An insurance company’s unacceptable conduct can unfairly put your entire future at risk, leaving you without the resources you need to move forward. 

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It may seem that the insurance company has all the power in this situation, but with the right help, you can hold this corporation accountable. A bad faith insurance attorney at Johnstone Trial Law LLC can help you pursue financial compensation through the civil legal system.

 

What Is Bad Faith?

When a covered event occurs and you file a claim, your insurance company may give you an unnecessary runaround, delaying the payment of benefits you depended on. In some instances, the insurer outright denies the claim. Other conduct may involve more subtle means of cheating the insured. 

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In the legal profession, the term we use for such conduct is “bad faith.” 

Insurance companies have a duty of good faith to their policyholders. Under this duty, the carrier is obligated to approach the claim in a manner that treats the interests of the insured—namely, receiving the benefits provided for by the policy— with equal regard as its own interests, which include minimizing the cost of claims payouts. 

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In other words, the insurer cannot interpret policies, conduct investigations, or approach negotiations in ways that give the carrier an unfair advantage over the policyholder. Attempting to do so for purposes such as lessening the payout or facilitating a claim denial violates the insurer’s duty to act in good faith. 

Examples of Insurance Carrier Bad Faith

Any breach of the insurer’s duty to act in good faith in its policyholders’ claims could potentially provide the grounds for a bad faith claim. The most common examples of bad faith conduct on the part of insurers include the following.

  

Improper Investigations 

Investigating a reported claim is part of the process you have to go through to receive compensation for a covered event. However, how the insurer goes about conducting an investigation matters. An investigation may be considered improper if the insurer did any of the following: 

• Fail to take statements from relevant parties

• Fail to follow up on the information you provide as the policyholder 

• Ignore information that would support the payment of the claim

An investigation should focus on gathering the facts, not merely looking for an excuse to deny the claim. 

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Biased Policy Interpretations

The language of the insurance policy establishes what’s covered and what isn’t. When exclusions and other language found in a policy are vague, the insurance carrier must interpret that language in favor of the policyholder. Generally, this means that unless the incident is explicitly excluded under the policy, the insurer must treat it as a covered event. Interpreting such vague language in the insurer’s own favor rather than that of its policyholder can constitute bad faith conduct.

 

Unfair Claim Denials 

Although insurance companies can deny claims, they can only do so based on the policy language and the findings of a thorough, unbiased investigation. For example, a carrier may deny a claim if it determines that the loss for which you’re seeking benefits is not a covered event under the language of the policy. The insurer should not approach this investigation with the aim of finding an excuse to deny the claim. 

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In some instances, insurance companies will even fabricate reasons to deny legitimate claims. For example, an insurance company might cite an exclusion that isn’t actually contained in the language of the policy. Only a thorough analysis of the policy can reveal such fabrications.

 

Low-ball Property Settlement Offers

A homeowners policy, commercial property policy and other types of property policies also provide for the amount the insurance company has to pay in the event of a loss. This amount is usually defined as replacement cost or actual cash value. In either event the insurance company must pay the full amount required by the policy. However, many times insurers generate computer estimates that don’t reflect the amount that it would take an actual contractor to repair or replace the property. When the insurance company deliberately low-balls a policyholder in an effort to save money, this is bad faith.

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Inappropriate Medical Review Processes

In cases that involve reviews of medical records, such as disability claims and first-party claims for medical benefits under auto insurance coverage, it’s not unreasonable for insurance companies to review relevant medical records in the course of investigating a claim. However, insurers have been caught setting up review panels and procedures designed to minimize payments or deny claims unfairly. 

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Legal Recourse for Victims of Insurance Bad Faith

When interactions between you and your insurance company deteriorate, you may feel like there’s nothing you can do. The insurance carrier has all the money and, it seems, all the power, too.

 

Having an experienced insurance bad faith lawyer in Birmingham, AL, on your side provides critical advantages. The insurance company has the benefit of professional legal advisors and knowledge of the laws that govern insurers—and so can you, with an attorney dedicated to protecting your interests.

 

Through an insurance bad faith claim, you can pursue financial compensation from a carrier that has failed to uphold its obligations to you as a policyholder. Although you need to establish the full facts of how the insurance carrier acted in bad faith, a claim allows you to recover compensation for losses that can range from the initial policy benefits that should have been paid to mental anguish, consequential damages, and attorneys fees. In some instances, you may even be eligible for treble damages, which provide three times your actual damages, or for punitive damages against your insurance carrier. These remedies will vary depending on the state in which the policy was issued.These remedies are designed to punish and deter insurance companies from committing bad faith.

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Because of these additional possible damages, bad faith claims can help policyholders achieve full and complete compensation,, especially when you have an experienced bad-faith insurance attorney handling the the claim for you. 

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What Are the Elements of a Bad Faith Claim?

While the exact formulation differs from state to state, generally to have a claim for bad faith you must show:: 

• The existence of a valid insurance contract between you and the insurer

• Conduct on the part of the insurer that breached that contract

• Intentional refusal to pay your claim and

•  the absence of a debatable reason for non-payment. 

Establishing that the insurer failed to investigate the claim, especially intentionally for the purpose of denying the claim, can also support your bad faith case. 

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It takes a thorough analysis of the facts, the development of solid legal arguments, and an in-depth understanding of insurers’ duties to their policyholders to fully establish all of these elements. For a more complete understanding of these factors, take a look at our book, What is Insurance Bad Faith [link[The guidance of an experienced insurance bad faith lawyer in Birmingham, AL, is valuable for ensuring you are prepared to present the strongest possible case against your insurer. 

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Types of Insurance Bad Faith Cases Our Attorney Can Assist You With 

At Johnstone Trial Law LLC, we have a long history of fighting for policyholders, standing up to the biggest insurance companies in the country, and achieving successful results for our clients. We’re prepared to assist you with situations involving the following: 

• Homeowners insurance

• Private flood insurance

• Individual disability insurance

• Individual health insurance, including short-term or limited-benefit health insurance

• Life insurance

• Accidental death insurance

• Commercial property insurance

• Commercial general liability insurance 

• Professional liability insurance

• Errors & omissions policies

• Directors & officers' liability policies 

• Boiler and machinery policies 

• Employment practices liability policies

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Whether your claim involves an improper investigation, a claim denial, or another form of bad faith conduct, we have the experience to provide comprehensive support for your legal matter. 

How Johnstone Trial Law LLC Can Help

Insurance cases and bad faith claims specifically differ from other types of law. You need professional legal guidance to help you make sense of the special rules and regulations that apply to insurance companies. 

We can help you: 

• Interpret insurance contracts according to special rules that apply to these policies

• Establish that your accident or situation is a covered event within the coverage provided for by the language of the policy 

• Ensure that the insurance company is abiding by these regulations, including bearing the burden of proving that an exclusion applies

• Identifying intentional or reckless bad-faith conduct on the part of the insurance company

• Proving that the insurance company’s conduct was intentional, done without conducting a thorough investigation or without a reasonable reason for denying the claim

From our main office location in Birmingham, we serve policyholders throughout Alabama, Washington State, and Texas. 

Why Choose Johnstone Trial Law LLC?

We focus on representing policyholders, eat sleep and breath insurance, and have been the voice of the policyholder for over fifteen years. Other lawyers trust us to handle their client’s insurance claims. Most importantly, we get results. 

Personal Attention for Every Client We Serve

You deserve better than to be treated like just a case file or a number. Throughout your case, we focus on providing personalized service that puts you at ease and on helping you understand your rights and legal options. You will have a personal contact who knows your name, gets to know you as a person, and knows what is going on in your case. 

A Dedicated Focus on Insurance Claims Disputes

Relatively few lawyers practice in the unique area of bad faith law. These cases can take more work, involve greater risk, and can be against the biggest insurance companies in the world At Johnstone Trial Law LLC, we put in the work of identifying bad faith and holding insurers accountable to policyholders.. 

Help Taking on Insurance Companies at No Upfront Cost

Suing an insurance carrier can be risky, but it’s worth it when you have a solid case. We take qualifying casesg  on a contingency basis, without charging upfront fees. We also represent policyholders for an hourly fee when it makes sense for the case and client.

Contact a Bad Faith Insurance Attorney at Johnstone Trial Law LLC Today for a Free Case Evaluation

This whole situation has already gone on too long, with the insurance company dragging out the process and failing to pay the benefits you’re entitled to. Don’t wait any longer to bring on skilled legal assistance. 

For help from an insurance bad faith lawyer in Birmingham, AL, contact Johnstone Trial Law LLC online or call 205-512-6715 today.

Frequently Asked Questions About Insurance Bad Faith Claims

Is it hard to win a bad-faith claim?

Bad faith claims are complex legal issues that require a full understanding of the structure and special regulations that apply to the insurance industry. Winning these cases requires the correct interpretation of policy language, a diligent analysis of the facts to identify patterns of improper behavior, and a willingness to advocate for your interests—even if it requires taking the case to court. So yes, it can be hard. We like hard. 

How do you prove an insurance company acted in bad faith?

To prove that your insurance company acted in bad faith, we consider numerous methods that include examining state laws and insurance regulations, analyzing the insurance company’s documents, and comparing your insurer’s conduct to industry guidelines. We depose the key witnesses, sometimes hire expert witnesses, and bring bad faith conduct to light.

What compensation can victims of insurance bad faith recover through a claim or lawsuit? 

The exact compensation you could be entitled to through an insurance bad faith claim depends on the specifics of your situation and state laws. Examples of the types of damages we can pursue for you depending on your state  include:

• The policy benefits you should have been paid initially 

• The mental anguish you have been through because of this stressful situation

• Prejudgment interest

• Consequential damages resulting from the insurer’s failure to pay the claim

• Attorney’s fees

• Punitive damages awarded to punish the insurer

• Treble damages, which provide triple the amount of your actual damages

Having an experienced insurance bad faith attorney handling your claim can help you recover the full amount of compensation you’re entitled to. 

Do you need a bad-faith insurance attorney?

Given the specific challenges involved in a bad faith insurance claim, professional guidance is critical to achieving a successful outcome. An attorney can handle all aspects of your bad faith insurance claim for you, working to gather evidence, analyze information, assess the value of your claim, represent you in negotiations and legal proceedings, and fight for you in court if necessary. Contact us today for your free consultation!