Bad Faith Insurance Claim Attorney in Birmingham, Al
Insurance companies are responsible for using their resources to appropriately evaluate and process your claims. However, when a claim is denied, it is often the result of the insurance company looking for ways to save money. They may be cutting corners during their investigation, refusing to pay valid claims, or refusing to reach a fair settlement with a policyholder. These may all be considered acts in bad faith.
If you have been wrongfully denied by an insurance company, you may have grounds to file a bad faith claim. Sinclair Law Firm can help.
Don’t face your insurance company alone. Get help from a proven Alabama legal team with a record of holding insurers accountable. For a free claim review with a bad faith insurance claim attorney near you, contact our Birmingham, AL law firm today. You can also reach us by phone at (877) 249-0091.
What Is a Bad Faith Insurance Claim?
Bad faith claims arise when an insurance company has treated their insured dishonestly, unfairly, or with fraudulent intent in handling a claim.
Bad faith insurance claims typically allege that the insurer did not fulfill its duty of good faith and fair dealing, which is an implied obligation in insurance coverage.
Normal Bad Faith and Abnormal Bad Faith
In accordance with Alabama law, bad faith insurance claims fall into two categories: normal bad faith and abnormal bad faith.
- Normal bad faith is when the insurance company knowingly rejects a claim without a reasonable basis.
- Abnormal bad faith is when the insurance company fails to investigate a claim adequately.
Examples of Bad Faith Conduct by Insurance Companies
Sinclair Law Firm has helped numerous people throughout Alabama hold insurance companies accountable when they handle claims in bad faith. Below are some common examples of bad faith conduct we’ve seen over the years.
- Unreasonable Denial of a Valid Claim: This is when an insurance provider denies valid claims without proper investigation or justification.
- Delaying Claim Processing: This is when an insurance company unreasonably prolongs the processing of a claim without valid reasons.
- Inadequate Investigation: This is when an insurance company refuses to investigate a legitimate claim thoroughly or ignores evidence supporting the claim.
- Offering an Unreasonably Low Settlement: This is when an insurance company provides a settlement offer significantly below the insurance policy’s reasonable value.
- Misrepresentation or Fraud: This is when an insurance provider or policy administrator provides false information, misrepresents policy terms, or engages in fraudulent activities.
What Bad Faith Claims Are Meant to Accomplish
A bad faith claim is intended to secure the full benefits that were denied while seeking additional damages related to the insurer’s actions. In addition to compensatory damages for financial losses, we can also seek punitive damages to punish the insurer for its underhanded conduct.
Laws regarding bad faith insurance claims vary by jurisdiction. It’s wise to consult with insurance bad faith lawyers familiar with Alabama state law as well as any other applicable local regulations. By reaching out to our law firm for a free claim review, you can find out if you have a worthwhile case.
How Long Do I Have to File a Bad Faith Insurance Claim?
In the state of Alabama, you have two years to file a bad faith lawsuit. This two-year statute of limitations begins when you would have known about the bad faith conduct.
Two years isn’t as long as it sounds. You may have even less time to act if you’re dealing with workplace-provided benefits that are denied. It’s best to speak with a Birmingham insurance bad faith attorney as soon as possible so you can get the legal process underway. The sooner you act, the sooner you can receive the benefits you’re owed.
How Sinclair Law Firm Can Help with Your Bad Faith Claim
When pursuing a bad faith claim, you need a team of legal professionals to help you navigate this type of litigation. These cases are not as simple as just experiencing an insurance company’s misconduct, exposing their actions, and receiving a settlement.
You need an attorney to analyze your case and strategically strip away any basis the insurance company may have to deny your claim. That’s where the Sinclair Law Firm can help.
Our Team Understands How Insurance Companies Operate
Attorney Tom Sinclair started his legal career representing insurance companies and automakers. He experienced a change of heart when he saw how the system was failing everyday people. Our team can use this firsthand knowledge of insurance company tactics as we build your bad faith insurance case.
We’re a Known Quantity to Insurance Companies
Insurance companies know who we are. In fact, some of these companies flag Tom Sinclair’s name when they see it in a file. To us, this means we’re doing good work for Alabamians. We’ll use our strong reputation for advocacy to make sure you receive your benefits while seeking additional compensation for any hardships you experienced.
We Offer Free Claim Reviews and Adapt to Your Finances
If your benefits have been denied, the last thing you want to see is a bill. Sinclair Law Firm offers free consultations so you can have your case reviewed by a legal professional without any fees or obligation. In addition, our law firm can work out a payment arrangement that works for your current financial situation.
Tom and his team are on your side. To request a free claim review with an experienced insurance bad faith lawyer near you, contact our Birmingham, AL law office today.
How to Prove Bad Faith Insurance
The Alabama Supreme Court has established specific elements that must be proven in bad faith claims. These elements include:
- Demonstrating that an insurance contract agreement existed between the policyholder and the insurance company
- The insurer intentionally rejected the claim without a legitimate reason
- There was no valid basis for denial
- The insurer was aware that the claim denial lacked support from facts and law
If the insurer refuses to investigate the policyholder’s claim, it is necessary to show that there was no legitimate reason to deny the claim. In cases where an insurance company attempts to deny a claim without adequate investigation, it may be necessary to prove that there was no legitimate or arguable reason to deny the claim and that the investigation was insufficient.
The responsibility of acquiring this proof lies with the party making a bad faith claim and providing evidence that satisfies these elements.
At Sinclair Law Firm, our Birmingham-based team offers extensive experience navigating bad faith claims throughout Alabama. We have a strong commitment to helping our clients achieve the benefits they deserve while making sure insurance companies pay for their misconduct.
Potential Damages in a Bad Faith Insurance Claim
Possible damages in an insurance bad faith lawsuit include:
- Full Policy Benefits: You can be compensated for the full amount of benefits you should have been paid under your policy. This applies to denied claims as well as partial payment of benefits.
- Consequential Damages: You can be compensated for any loss of income, out-of-pocket expenses, and other material losses due to denied or delayed benefits.
- Pain and Suffering: You can be compensated for mental anguish, stress, or emotional suffering related to the insurance company’s misconduct.
- Punitive Damages: In some bad faith cases, the insurer may be punished for their actions if their conduct was the result of malice, fraud, or reckless disregard for the policyholder’s rights.
During your free claim review at our Birmingham law office, we can help you understand how much your insurance bad faith case may be worth.
How ERISA Prevents Bad Faith Insurance Claims
The Employee Retirement Income Security Act of 1974 (ERISA) was originally intended to protect workers and their employer-provided benefits. Unfortunately, insurance companies figured out how to use the law against workers.
Because of ERISA, workers cannot file a bad faith insurance claim when their workplace benefits are wrongfully denied. Instead, they have to go through a different and more difficult appeals process to try to obtain the benefits they are due.
ERISA Appeals vs. Bad Faith Insurance Claims
The ERISA appeals process is completely different from non-ERISA claims.
For one, you cannot file a bad faith insurance claim if your benefits are governed by ERISA. Instead, you need to exhaust administrative review options through the appeals process. If your appeal is denied, you can have your appeal reviewed by a federal judge to seek the benefits you are due. If your ERISA case is successful, you are only entitled to the benefits you were due, but you cannot seek additional damages like you can in an insurance bad faith claim.
This just scratches the surface of how ERISA appeals differ from bad faith claims. It’s why our Birmingham legal team is ready to offer answers and guidance no matter what challenges you may encounter.
What Types of Plans Are Governed by ERISA
ERISA covers most insurance and retirement benefits that are provided through your employer. Only certain types of plans are not governed by ERISA. Unless you’re a state employee, federal employee, work for the church, or are employed by an Indian Tribal Government, your claim is likely subject to ERISA regulations.
What to Do About ERISA Claims
If your benefits are governed by ERISA and your claim is denied, you need to get in touch with an experienced ERISA lawyer right away. You have a brief amount of time to put an appeal together, which will serve as your legal foundation if your case needs to be reviewed by a federal judge.
Contact Our Bad Faith Insurance Claim Attorney in Birmingham, AL
If your benefits have been denied or delayed, you need Sinclair Law Firm on your side. Do not delay. If your benefits are governed by ERISA, you may have a limited window to file an appeal. To request a free claim review with an experienced bad faith insurance claim attorney near you, contact our Alabama law firm today. You can also reach our Birmingham office by phone at (877) 249-0091.
Bad Faith Insurance FAQs
Bad faith insurance claims can be complicated, and you likely have more questions about your legal options and what to expect. We’ve compiled a list of the most common questions we receive about bair faith claims at our Birmingham, AL law office. If you have any additional questions that we did not answer, feel free to contact us to get the information you need.
Will my bad faith insurance claim go all the way to court?
Not necessarily. Many insurance bad faith claims settle outside of court rather than going all the way to a jury trial. As we work on your case, we’ll keep you updated about settlement negotiations and whether it’s worth going to court to maximize compensation. If we do go to trial, we’ll be a fierce advocate for you every step of the way.
Can I still sue an insurance company for bad faith if I was eventually paid?
Yes. Just because you were paid does not mean the insurer acted in good faith. Any delays or misconduct that causes you to wait for payments or experience a financial loss are grounds for a bad faith claim. In fact, the insurance company may have been lowballed you with their initial offer, and that can also be grounds for a bad faith claim.
Will filing a bad faith claim affect my current insurance coverage?
No, your existing insurance coverage should not be impacted by filing a lawsuit as long as you continue to meet the terms in your policy. However, some insurers may retaliate against you because of the bad faith claim. Let Sinclair Law Firm know if you notice that your premiums have gone up or if your insurance policy is not renewed.
What steps should I take if I think an insurer acted in bad faith?
Any time you feel an insurer acted in bad faith, we recommend that you review your insurance policy, gather the denial letter and any other documents from the insurer, and request a free claim review at our Birmingham law office. We can determine if you have a viable bad faith claim and begin the process of holding the insurer accountable.