Bad-faith Claim

Understanding Bad-Faith Insurance Claims in Connecticut

When you purchase an insurance policy, you’re entering into a contract where you pay premiums in exchange for protection in the event of specific catastrophes. Insurance companies, including those in Connecticut, are legally obligated to honor the terms of their policies. However, insurers make more profit by minimizing payouts, and they often wield significant power in investigating and deciding the validity of claims.

Unfortunately, this power is sometimes abused. When an insurer wrongfully denies, delays, or undervalues your claim without valid reasons, this constitutes bad-faith. Victims of bad faith insurance practices have the right to file a claim to recover what they’re owed—and in many cases, even more than the original policy amount.

Types of Bad-Faith Insurance Claims

In the legal system, bad faith insurance claims typically fall into two main categories:

1. First-Party Bad-Faith Claims

This type of claim arises when your own insurance company wrongfully denies or undervalues a claim you’ve made under your policy. For example:

• If you file a claim with your homeowners’ insurance for damages after a storm and your insurer denies the claim without proper justification, it may constitute bad faith.
• If you were hit by an uninsured driver and file a claim under your uninsured motorist coverage, but your insurer denies the claim on weak or unfounded grounds, this is another example of a first-party bad faith case.

2. Third-Party Bad-Faith Claims

This involves situations where an insurance company is supposed to handle claims on your behalf under a liability insurance policy but fails to do so properly. For instance:

• If you were in a car accident where you were at fault and your auto insurance company was supposed to cover the other driver’s costs, but they fail to do so, leaving you financially responsible, this could be a third-party bad faith action.
• Similarly, if your business liability insurer refuses to pay a legitimate claim made against your business, this is another example of third-party bad faith.

Recognizing Bad-Faith Practices

Bad faith insurance claims aren’t always obvious, but some common signs include:

• Delays in Processing: The insurer drags its feet for months without valid reasons.
• Failure to Investigate: The insurer doesn’t perform a proper investigation of your claim.
• Unclear Denials: Denying your claim without providing a clear or valid explanation.
• Lowball Offers: Offering to settle for an amount far less than your claim’s worth.
• Misrepresenting Policy Terms: Twisting the language of your policy to avoid paying.

In Connecticut, insurance companies are held to a standard of good faith and fair dealing. If they fail to meet that standard, you have legal options.

Your Legal Rights Against Bad-Faith Insurers in Connecticut

Many people assume that if their insurance company denies a claim, there’s nothing they can do. Others believe that the fine print in their policy makes the insurer’s decision final. However, this isn’t always true. Insurers are bound by state laws, and their decisions can be challenged.

Under Connecticut law, if your insurer acts in bad faith, you may be entitled to:

1. The full amount of your original claim.
2. Additional damages for emotional distress or financial hardship caused by the insurer’s actions.
3. Punitive damages designed to punish the insurer for their wrongful conduct.

To successfully bring a bad faith claim, you’ll need to show that the insurance company acted unreasonably or without proper cause in denying your claim. This often requires gathering evidence such as policy documents, claim communications, and expert opinions.

How Bert McDowell Injury Law Can Help

At Bert McDowell Injury Law, we understand the frustration and financial strain that come with dealing with a bad faith insurer. Our experienced attorneys have the knowledge and resources to hold insurance companies accountable and ensure that you receive the compensation you deserve.

Why Choose Us?

• Personalized Attention: We’ll take the time to understand your situation and develop a legal strategy tailored to your case.
• Proven Results: We have a track record of success in helping clients recover damages in bad faith insurance claims.
• No Upfront Costs: You don’t pay unless we win your case.

Take Action Today

If your insurance company is ignoring your claim, delaying payment, or denying it without justification, don’t wait to take action. Insurance companies rely on policyholders giving up—but you have rights, and we’re here to protect them.

Call Bert McDowell Injury Law at (475) 231-3274 for a FREE consultation today. Let us evaluate your case and help you fight back against bad-faith insurance practices. Don’t let the insurance company take advantage of you—get the legal support you need to secure the compensation you’re owed.