Rapid City Insurance Bad Faith Attorneys

Lawsuits When Insurance Companies Mistreat Claimants

Insurance companies act in “bad faith” when they intentionally mismanage a claim to try to save money. For example, an insurer might tell someone who has been in a car accident that they are ineligible to receive coverage because that specific type of accident isn’t covered, even though this is not the case. What most claimants do not realize is that they can file a separate claim or lawsuit against an insurance company for bad faith actions, which could result in not only their original claim being paid but also additional financial awards.

Beardsley, Jensen & Lee in Rapid City can help you understand your rights as someone who has been exploited through insurance bad faith. Our legal team can represent plaintiffs and insurance companies in insurance defense cases. This duality to our experience and backgrounds allows us to approach insurance bad faith cases from a unique, calculated angle with one goal: getting you the most compensation possible with as little stress as possible.

Call (605) 777-7466 to speak with our Rapid City insurance bad faith lawyers.

Forms of Insurance Bad Faith

Insurance bad faith can take many forms, including:

• Delays: Insurance companies know that insurance bad faith tactics are punishable with a lawsuit, so they try to find subtle ways to mismanage claims, such as delaying every single response and step. The aim is to make the claimant get frustrated and give up on the claim entirely, or to make them hastily accept the first offer, which will probably be lowballed.
• Depreciations: An insurance company might try to lower the value of a claim – or depreciate its value – without justification. For example, an insurer could ignore an insurance adjuster’s estimations for house repair costs and come up with a lower cost on its own or after hiring another insurance adjuster who is instructed to overlook certain kinds of damage.
• Denials: Perhaps the most egregious form of insurance bad faith is when the insurance company outright denies a claim without investigating it or without any stated reason. As shocking as a wrongful denial might seem, they are surprisingly common.
• Harassment: Even if your claim is managed properly, it can constitute insurance bad faith if you are harassed or intentionally misled by the insurance company. Insurers need to be forward, honest, and respectful whenever speaking with you. Telling you not to hire an attorney can be a form of misinformation, too.

What is an Insurer’s Duty of Good Faith?

When you sign an agreement with an insurance company, you can assume that they will attempt to fulfill its side of the contract in good faith. The overall concept of “good faith” means to act in a way that is expected, professional, and will uphold the terms of the contract. Insurance bad faith happens whenever an insurance company breaches its duty of good faith owed to the policyholder.