When you pay your insurance premiums, you expect something in return if an accident occurs. Unfortunately, insurance companies don’t always act in their customers’ best interests. Disagreements as to the meaning of insurance policy terms and bad faith insurance practices can lead to an insurance dispute or an unjustified claim denial.
Discuss Your Little Rock Case With an Insurance Dispute Attorney
Are you involved in an insurance dispute? Attorney Tim Reed can help you navigate the process while protecting your rights. If you think your insurance claim has been wrongfully denied, you may be entitled to compensation through a bad faith insurance claim. We offer potential clients a free initial consultation. Attorney Tim Reed will review your case and help you understand your legal options.
Types of Insurance Dispute Claims We Handle
At the Reed Firm, we have extensive experience handling a wide range of insurance disputes, including disputes related to automobile, home, renters, professional liability, and life insurance policies. Many disputes arise when an insurance company denies a customer’s claim. Other types of insurance disputes may include the following:
- Disagreements over premium increases
- Disagreements over changing policy coverage
- Misinformation from insurance companies
- Misunderstanding of tax benefits or discounts from purchasing insurance
- Forged signatures or other misconduct
- Lapse in coverage without notification
- Other unfair and deceptive practices
The Benefits of Working with an Insurance Dispute Attorney
Insurance policies are complex and hard for customers to understand. Insurance companies write their policies and therefore understand them well. If a dispute arises, insurance companies have significant resources, including legal resources, putting individuals at a disadvantage. If you’re involved in an insurance dispute in Little Rock, Arkansas, or anywhere in Arkansas, hiring an experienced insurance dispute attorney can be the most painless way to resolve the dispute and obtain the money you deserve.
Attorney Tim Reed has extensive experience negotiating with insurance companies to obtain the best possible payout. To that end, he will:
- Investigate how the insurance company handled your claim
- Provide an overview of all your legal options
- Handle all communications with the insurer
- Consult with experts when necessary
- Determine the value of your case
- Negotiate for the best possible settlement
- Communicate effectively with you throughout every step of the legal process
Sometimes, insurance companies won’t compromise. Attorney Tim Reed has extensive experience litigating insurance disputes and will seek legal action on your behalf, if necessary.
Filing an Insurance Claim
Filing an insurance claim is an essential step toward obtaining compensation. Errors in filing or presenting insurance claims may provide an insurance company a legitimate reason to deny a claim. Speaking to an attorney sooner rather than later can help you protect yourself. Working with an attorney to file your claim can be beneficial, particularly if you seek significant compensation.
Disputes Involving Insurance Denial
Insurance disputes frequently arise when an insurance company denies a person or company’s claim. When an insurance company denies an insurance claim, the company must provide a written reason for the denial. If the company denies the claim in bad faith, you may be able to pursue compensation through a bad faith insurance claim, in addition to the original accident claim.
Proving Liability in a Bad Faith Insurance Claim
Insurance companies can legitimately deny claims when:
- The policy excludes coverage for the claim
- The incident underlying the claim isn’t covered
- There was a lapse of coverage, or there was incorrect or incomplete information within the claim or the insured’s application
However, when an insurance company denies a claim by misleading a policyholder, committing fraud, or otherwise acting dishonestly, the policyholder may pursue a bad faith claim against his or her insurance company. Examples of bad faith practices may include:
- Denying a valid claim that should be covered
- Failure to defend a third-party claim
- Only partially paying benefits
- Negligently refusing to settle with a third party
- Failing to investigate a claim properly
- Undue delay in processing the claim, even if the benefits are eventually paid
- Offering an unreasonably low settlement amount
- Canceling a policy to avoid paying a valid claim
How Long Do I Have to Take Legal Action Against My Insurance Company?
If you wish to pursue legal action against an insurance company, you must file a claim within the statute of limitations. The statute of limitations is a law that determines how long a person has to file a lawsuit. Generally, you have five years to file a lawsuit against your insurance company following an insurance dispute. Failure to pursue a claim within the statute of limitations will result in losing your ability to file a claim, so we recommend reaching out to an attorney as soon as possible.
Damages Available to Victims of Bad Faith Insurance Practices
When insurance companies commit bad faith practices, the court or jury can order them to pay monetary compensation that exceeds the amount of the policy in dispute. Such additional compensation can include the following:
- Attorneys’ fees and costs
- Damages for emotional pain
- Statutory penalties
- Interest while the case is litigated
- Punitive damages