Bad Faith Insurance Lawyers

Personal Injury Lawyers / Bad Faith Insurance Lawyers

A bad faith insurance attorney knows the unfair tactics insurers use, like delaying or denying valid insurance claims and refusing to pay reasonable settlements. When an insurer violates its obligations, our award-winning insurance claim lawyers fight to hold them accountable.

Over 65 years, Munley Law has built a reputation as one of the top personal injury firms in the nation, and that experience becomes your advantage when an insurer acts in bad faith. Our team has won settlements worth over $1 billion, including $12 million for a bad faith insurance action. We have also been recognized nationally by authorities like Best Lawyers, Lawdragon, and Super Lawyers, and hold nearly a dozen board certifications from the National Board of Trial Advocacy.

We know how to investigate unfair claim handling, gather the evidence needed to challenge improper denials, work with industry experts, and push back against tactics designed to delay or underpay your claim.

If you believe you have a bad faith insurance claim, contact the insurance lawyers at Munley Law to schedule a free consultation.

What is Bad Faith in Insurance?

Bad faith refers to an insurance carrier acting unreasonably or breaking their contractual duties and obligations to you. Some common examples of bad faith insurance practices include:

• Delaying claims or payment with no valid basis for denial
• Unreasonable denial of claims for improper or misleading reasons
• Failure to properly investigate and evaluate a claim
• Refusing to settle for a fair, reasonable amount when liability is clear
• Advising claimants not to obtain legal representation
• Negotiating and making agreements in bad faith with no intention of honoring them

You have legal rights when you buy an insurance policy. If an insurance adjuster violates those rights through deceptive practices, putting their financial interests ahead of yours, they act in bad faith according to insurance law. It’s a breach of their duty to act honestly and fairly.

Market data shows that insurers are facing increasing scrutiny over how they handle claims. A 2024 analysis of U.S. bad faith insurance claim trends reported bad faith claims tripled between 2022 and 2023, and the ratio of bad faith claims to professional liability policies rose from 14% to 52% during that period. This rise reflects an increasing number of policyholders facing unreasonable delays, unfair denials, and other conduct that violates the duty of good faith.

Adding to this problem is the reality that the claims industry is stretched thin. Recent data from the Bureau of Labor Statistics shows that the field faces roughly 21,600 annual openings for claims professionals as staff retire or move on. With fewer experienced adjusters handling large caseloads, mistakes and improper claim practices are becoming more common, which contributes to the rise of bad faith disputes across the country.

While insurance claims can be complex, there’s a difference between reasonable disputes and an insurer deliberately misleading or taking advantage of policyholders. When that line is crossed, legal action might be necessary to enforce your rights.

How Can a Bad Faith Insurance Lawyer at Munley Law Help You?

Bad faith insurance lawyers at Munley Law can help level the playing field. We know all the tactics insurers might use to avoid paying valid claims – from unreasonable delays and lowball offers to unjustified denials. Our team will investigate every aspect of your case to gather evidence proving the insurance company breached its contractual duties to you.

Our experienced attorneys have secured major verdicts and settlements from insurance giants in bad faith cases time and time again. One stand-out example is a $12 million jury verdict for a client whose leg was amputated in a forklift accident, where the insurance company claimed a lack of coverage and refused to cover the associated costs. Along with results like these, our attorneys hold nearly a dozen board certifications from the National Board of Trial Advocacy, a sign of the level of skill and experience we bring to every case.

Our partners have also earned national recognition across the legal field. All five have been named to the Lawdragon 500 Leading Plaintiff Consumer Lawyers list, and each appears on the National Trial Lawyers Association’s list of the Top 100 Trial Lawyers in Pennsylvania. Best Lawyers has named our attorneys as Lawyer of the Year five times, and Marion Munley has consistently appeared on the Top 10 Super Lawyers in Pennsylvania list since 2022.

Don’t let an insurance company take advantage of you by acting in bad faith. Our personal injury lawyers at Munley Law have decades of experience and can step in to protect you and hold the insurer accountable.

How Do I Know If I Have a Bad Faith Insurance Claim?

If your insurance company has violated your contract by unreasonably denying a legitimate claim, delaying payment without justification, or failing to investigate your claim correctly, you may have grounds for a bad faith action.

At Munley Law, our experienced bad faith insurance lawyers have been taking on insurance companies for years, and we have the track record to prove it. We dig deep, build bulletproof cases, and won’t stop fighting until you get the maximum compensation you deserve for insurance bad faith, delayed payments, claim denials, and other improper insurer conduct.

What Compensation Can I Recover in a Bad Faith Insurance Case?

In a successful bad faith insurance lawsuit, policyholders may be able to recover the policy benefits originally owed, along with additional damages. This can include monetary compensation for financial losses from the delayed/denied claim, emotional distress, attorney fees, economic hardship, and, in some cases, punitive damages against the insurer.

What Are Examples of Bad Faith Insurance Cases?

Common examples include:

• Unreasonably denied claims without proper investigation
• Failing to promptly pay a valid claim
• Interpreting policy language unfairly to avoid coverage
• Delaying or making lowball settlement offers
• Neglecting to communicate important policy details to policyholders.

For example, you recently had your roof done when a hurricane blows into the area. Because your roofer used substandard materials, your roof was severely damaged in the storm. When you put a claim into your homeowners insurance, it is denied because the insurance company believes the damage was caused by an “Act of God.” However, even though an Act of God had caused the damage, human negligence is the true cause of the damage.

What Rights Do You Have as an Insurance Policyholder?

As a policyholder, you should expect your insurance company to handle claims promptly, reasonably, and in good faith as outlined in your policy. Deceptive tactics like misrepresenting policies or unreasonably denying valid claims may constitute insurance bad faith. Know what you’re entitled to, and don’t be afraid of an insurance dispute when they overstep their bounds.

Over the past few years, there has been a growing trend of decisions across the United States that reduce barriers for policyholders and make it easier to establish bad faith when insurers mishandle claims. Courts in several jurisdictions have continued tightening expectations around claim handling, which strengthens your position when an insurer falls short of its obligations.

What Can I Do If I Suspect My Insurance Company is Acting in Bad Faith?

If you suspect your insurance company is acting in bad faith, it’s important to document all interactions and communications with them:

• Keep detailed records of phone calls, emails, letters, and any other correspondence.
• Gather any evidence that shows your claim is valid and that the insurance company is not fulfilling its obligations.

This documentation will be important if you need to take legal action.

What Steps Should I Take Before Calling a Bad Faith Insurance Lawyer?

Before contacting an attorney:

• Review your insurance policy carefully to understand your coverage and the insurer’s responsibilities.
• Organize all the relevant documents, including your claim file, correspondence with the insurance company, and any evidence supporting your claim.
• Make a timeline of events to clearly outline the steps you’ve taken and the responses you’ve received.

This preparation will help your attorney assess your case more effectively and provide the best possible advice on how to proceed.

How Much Does It Cost to Hire a Bad Faith Insurance Lawyer?

Most reputable bad faith attorneys work on a contingency basis, meaning you owe no upfront costs or fees. They only get paid if your case successfully obtains a settlement or award.

Can I Sue My Insurance Company for Pain and Suffering?

In some cases, yes – if the insurance company’s egregious misconduct caused severe emotional harm like anxiety, depression, or physical symptoms, those damages may be recoverable.

What Is the Time Limit for Filing a Bad Faith Insurance Claim?

Each state has different statute of limitation timeframes for filing bad faith suits, typically 1-5 years from the insurer’s wrongful denial or delay. Acting in a timely manner is recommended.

What Can I Do If My Insurance Company Refuses to Settle My Claim?

If your insurance company refuses to settle your claim fairly, there are several steps you can take. First, review your insurance policy to understand your coverage and the insurer’s obligations.

You can file a complaint with your state’s insurance department or regulatory agency, which can investigate and assist in resolving the dispute. Some states offer mediation services to help policyholders and insurers reach a fair settlement.

If these steps don’t resolve the issue, consult an attorney specializing in insurance bad faith claims. They can help you understand your legal rights and potentially file a bad faith lawsuit to ensure you receive the fair compensation you deserve.

Contact the law office of Munley Law today for a free consultation regarding your bad faith insurance action.