Insurance Bad Faith
You might assume that when you purchase an insurance policy from a seemingly reputable insurance company that they will promptly pay claims when submitted. That is not always the case. When an insurance company fails to pay a covered claim, fails to settle a case within policy limits exposing the insured to personal liability, or unreasonably delays the payment of a covered claim, the insurer is acting in bad faith.
Insurance is big business. Insurance companies make billions of dollars every year by investing the premiums you pay. The longer they retain the money, the more they make on their investments! Thus, the insurer has an incentive to delay the payment of claims.
However, when an insurance company fails to meet its contractual obligations, the financial consequences can be devastating. Individuals and business’ rely upon having the use of their assets and they purchase insurance to protect against risks to their assets. When an insurance company fails to pay a covered claim, or delays the payment of such a claim, people lose their houses, businesses’ can fail, individuals can be subjected to personal liability and the well being of families is jeopardized. An experienced insurance claims attorney can help.
The law provides a remedy under a doctrine known as insurance bad faith law. Under Pennsylvania law, an insurer who fails to pay a covered claim or unreasonably delays the payment of a covered claim can be held responsible not only for the amount of the claim but for punitive damages as well.
