Over 100 “5 Star Reviews”Insurance Bad Faith Lawyer
Located in Pittsburgh, PA
Serving Clients Throughout the State of Pennsylvania
Fight for Fair Treatment and Compensation
Tully & Tully Attorneys at Law Protects Your Rights Against Unfair Insurance Practices
If you believe an insurance company has acted unfairly, Tully & Tully Attorneys at Law can help you pursue an insurance bad faith lawsuit. Contact us online or call (412) 281-8700 to schedule a consultation with the following:
Insurance Law Suit Attorney | Denied Insurance Claim Lawyer | Unfair Insurance Claim Lawyer
Understand Insurance Bad Faith Lawsuits in Pennsylvania
An insurance bad faith lawsuit is a legal action taken against an insurance company that fails to uphold its duty to its policyholders. Bad faith practices can include:
- Unjustifiably denying a claim
- Unreasonably delaying a claim
- Offering an inadequate settlement
- Misrepresenting policy language
- Failing to disclose policy limitations
- Making unreasonable demands for proof of loss
- Threatening litigation to force a low settlement
Policyholders can seek damages, such as attorney fees, emotional distress, economic losses, punitive damages, statutory penalties, and interest.
Damages Recoverable in an Insurance Bad Faith Lawsuit
When an insurance company acts in bad faith, the financial consequences can be severe, as courts may award significant damages to the policyholder. In Pennsylvania, policyholders can recover:
01.
Contract Damages
Covering losses directly tied to the insurance policy
02.
Extra-Contractual Damages
Addressing emotional distress and economic losses.
03.
Punitive Damages
Punishing the insurer for egregious misconduct.
Here are Some Common Types of Insurance Bad Faith Lawsuits
Insurance bad faith lawsuits can result in severe financial penalties for insurers, including compensatory and punitive damages, as well as significant legal and reputational consequences. There are two primary types of insurance bad faith lawsuits:
First-Party Insurance Bad Faith Claims
These claims arise when policyholders sue their insurance company for denying or undervaluing their claims. For instance, an insurance company might deny coverage for a medically necessary procedure without justification.
Third-Party Insurance Bad Faith Claims
In these cases, policyholders sue their insurer for failing to cover damages owed to a third party. For example, an insurer might not accept liability for injuries caused by the insured, leaving the policyholder exposed to significant financial risk.
Common Bad Faith Practices by Insurers Use to Deny or Delay Claims
In severe cases, victims of insurance bad faith may receive substantial compensation, including punitive damages, which can lead to costly legal battles and significant financial penalties for the insurer. Insurance companies may engage in various bad-faith practices, including:
- Delaying claim investigation
- Underpaying claims
- Refusing to defend a claim without valid reasoning
- Misrepresenting policy terms or coverage
- Failing to negotiate or provide settlements
- Delaying payments or communication with claimants
Learn How to File a Bad Faith Lawsuit in Pennsylvania
Pennsylvania law requires policyholders to file a bad faith lawsuit within two years from the date of the insurer’s wrongful conduct. Due to the complexity of these cases, consulting a skilled insurance attorney is crucial.
