In general, insurers have three ways in which they may act in bad faith and neglect their responsibilities as outlined in an insurance policy. There exist numerous methods through which an insurer can engage in dishonest practices.
The cost of your insurance claim can vary depending on the type of insurer’s actions that may be considered bad faith. Similarly, the associated damages with the type of insurance claim can also vary, whether it is health, home, or car insurance.
What Damages Can Be Recovered in a Bad Faith Case?
Punitive awards can be granted when it is demonstrated that the insurance company engaged in oppression, fraud, or malice. Instances of non-monetary damages encompass expenses related to pain and suffering or emotional distress. Non-monetary damages necessitate a more logical justification to establish the presence and value of a loss or harm. Economic damages can be precisely determined as they consist of easily measurable costs, such as property loss or medical expenses. In broad terms, damages can be classified into three main categories: economic, non-economic, and punitive.
When you collaborate with a highly skilled bad faith lawyer, the likelihood of obtaining the complete compensation you are entitled to might significantly rise. The potential amount you can obtain can be significant, and being aware of the damages you can seek is crucial to the litigation approach in your case.
Economic Damages
If your home is damaged in an extreme weather event, for example, and you file an insurance claim, you may need to replace all of your belongings and furniture, as well as rebuild your home. In this situation, it is reasonable to expect that your insurance policy will cover the cost, since you have faithfully paid your monthly home insurance premium. Different types of insurance can help you recover from the economic damages directly related to the losses you suffer on your property, which you can clearly calculate by assessing the repairs needed for your house.
Your legal case includes the financial losses in those costs that you require but now must somehow bear on your own due to their actions. The injury their dishonest actions caused you can pursue financial compensation for. They engage in dishonest behavior when the company instead delays the payment of your claim, rejects it, or simply pays less, covering only a fraction of your losses.
If you are unable to drive due to injuries or if you don’t have a car, you may need to obtain a car to attend medical appointments and prevent income loss from not being able to work. In addition, you may have large medical bills and expenses related to therapy, hospital costs, and recovery. If you were seriously injured in a car accident, you may also face economic damages and other associated losses. In such a case, you could seek insurance coverage to recover these costs and have faith in the legal system.
Non-Economic Damages
Various categories of insurance claims delineate potential intangible losses in the subsequent segments. Substantial strain and distress can induce you, which can decline or postpone reimbursement of your claim, the insurance firm you relied on for the least desirable occurrence during such a period. A certain kind of incident, harm, or mishap has already adversely impacted your existence upon submitting an insurance claim. Besides the absence of payment, the absence of sincere intentions may inflict harm upon you when an insurer declines to fulfill the entirety or a fraction of your claim.
Non-Economic Damages In a Car Insurance Bad Faith Claim
An auto insurance claim related to bad faith actions by an insurer can cause emotional distress. Here is a detailed look at an example that shows you how.
As you confront the challenges of what is covered and not covered by your insurance policy, negotiation with your insurer becomes inevitable. Additionally, you have to manage daily transportation for school and work, which further complicates your life. Currently, you are stuck without a car due to extensive damages it has suffered. Although you may experience stress and fear, it is possible that you have not sustained severe physical injuries if your car had only minor damages.
You might expect some delay in the processing of your claim before you can get your car repaired and back on the road. It is reasonable that an insurer needs time to handle some administrative work. But this is the core of their business: they handle payment of claims (and receipt of premiums) all the time. So, you will likely feel highly distressed if suddenly, in the midst of the process, the insurer surprises you with notification that they won’t pay your claim, or they unexpectedly drag out deciding which auto shop they will approve for your repairs, or they notify you that they won’t pay the full costs to fix the damage to your car.
The Stress of Your Repair Bill
The inconvenience of being without your car for transportation now may pale in comparison to the stress you feel when your insurer refuses to provide you payment for what is clearly covered in your policy. You’ve kept up with your premium payments every month, knowing that if the time comes when you need help, your insurance coverage would protect you from having to pay out large sums of money.
That trust in your insurance company has been breached when they don’t honor your policy and perform the duty the policy obligates them to perform.
In short, yes, you can wonder if you can sue an insurer for emotional distress. The challenges you encounter due to the insurer’s lack of honesty may lead to mental anguish concerning your uncertainty about finding funds to fix your car. Additionally, you might experience significant unease regarding your transportation to work. It is possible that you reside in an area without access to public transportation. It could be that you are unable to afford the cost of renting a vehicle.
Any of these issues can cause you harm, and that harm can be quantified as non-economic damages. This harm exists whether the insurer’s bad faith act is a complete denial of your claim, underpayment where you are still stuck with a large repair bill, or a long delay to pay your claim. Any of these bad faith actions mean you must cover the costs of repairs on your own and then get reimbursed weeks or months later.
Emotional distress damages relate to the mental anguish suffered by the policyholder caused by having to deal with the insurance company and its bad faith conduct. Having a loss for which you need to make an insurance claim is already a stressful situation, and when your insurance company denies or delays paying your claim, that adds to your stress. This is why you can sue an insurance company for emotional distress.
Non-Economic Damages In a Health Insurance Bad Faith Claim
Bad faith actions by a health insurance company can cause policyholders pain and suffering. These types of bad faith claims can lead to very costly damages. Here’s an example to show you how.
In the identical scenario, it has produced favorable outcomes for other patients, and informs them it is their optimal, and perhaps sole, opportunity to survive the illness, the physician informs them it is referred to as photon radiation therapy. It can precisely target solely the malignant growth and safeguards other tissue and organs from damage. Once they’ve had a few days to cope with the initial shock of their diagnosis, the physician informs them there is a recently accessible therapy that has tremendous success with the form of cancer they possess. In addition to the apprehension regarding what the future may entail, the patient likely anticipates that they’ll necessitate surgery, radiation, chemotherapy, or a fusion of these treatments. The information presented to an individual that they have cancer is devastating.
The doctor who is employed by the insurer, claims that there is little familiarity with photon radiation therapy and has little experience in treating cancer patients. Typically, when health insurance claims are filed for coverage of photon radiation treatment, a staggering number of other doctors claim the same.
Because the doctor has only a few minutes to evaluate the claim before tackling the large volume of others, the doctor denies the coverage. Just like that, the patient’s life hangs in the balance and, in an instant, their chance at survival is compromised. The patient’s own physician helps them file an appeal to get another review of the claim. That, too, is denied by the insurer.
The patient, who has passed away, may bring a lawsuit for bad faith, as their surviving family members may also seek damages for the extended suffering and pain they unnecessarily endured. Additionally, the patient can seek damages for the emotional distress caused by facing the potential outcome of death, which could have been averted had the approving insurer covered the costs of photon radiation therapy. The symptoms of cancer weaken the person’s body and persist, causing physical distress. The patient was unable to receive traditional chemotherapy and radiation treatment, but they were able to receive specialized photon radiation treatment.
You can seek non-monetary damages in a lawsuit, and even a delay in handling a claim can be considered an act of bad faith. The results can be devastating, especially when a patient has a potentially fatal illness. Additionally, it could also be the tragic outcome of an unreasonable delay in approving the payment of a claim when an insurer takes an excessively long time to approve the payment of a claim, which could also result in the denial of the claim.
Punitive Damages
The individual could have passed away due to these actions. The insurance company must have acted with malicious intentions or harmful intent. It might also be feasible to seek punitive damages in a lawsuit for bad faith in this instance where a patient was denied the specialized and efficient cancer treatment.
The family of the patient, who are likely angry, frustrated, and grieving, will hopefully cause the insurer to change their practices after reviewing how they claim that no other family will experience the same suffering and emotional distress. They hope to receive a large enough punitive damages award if they can get justice and want to change the insurer’s practices.
Unlike other types of personal injury cases, there are no limitations on punitive damages in cases of bad faith insurance under Nevada law. It is important for you and your attorney to recognize that the potential for high punitive damages exists in this case. It is crucial for you and your attorney to acknowledge the possibility of significant punitive damages in this case.
How Much is a Bad Faith Claim Worth?
There is no simple or single answer to the question of how much your claim is worth, as it will depend on all the factors involved in your case. These factors include the damages suffered, both economic and non-economic, and whether you can pursue punitive damages, which can greatly increase the compensation you could receive if your claim is deemed to have a bad faith claim.
The strength of the proof against your insurance company and your attorney’s expertise in building the case will also impact the value of your bad faith claim.
Our attorneys will evaluate all the details and circumstances of your situation to help you determine the maximum value that your bad faith claim could have.
Contact Our Nevada Bad Faith Insurance Attorneys for Help
If an insurer fails to act in good faith and disregards their duty as outlined in your policy, you have grounds to seek damages and file a lawsuit. Whether it is a healthcare procedure, home damages from hail or flood, or a car accident, you have the right to expect that your insurer will reasonably uphold their duty and promptly process your insurance claim.
If you decide to proceed without assistance, you will encounter a more challenging struggle if the misconduct by the insurance company is particularly severe, and you may have grounds to seek additional punitive damages along with economic and non-economic damages. It is advisable to collaborate with lawyers who possess expertise in confronting insurers who engage in dishonest practices if you desire a higher probability of achieving a favorable resolution. These particular legal actions are inherently intricate, which is why a thorough understanding of Nevada’s laws and prior involvement in bad faith cases are essential for succeeding in such a lawsuit.
Law Associates & Leverty has a long history of fighting for policyholders who have been unfairly treated by insurers, so we will be your strongest advocate in getting you the compensation you deserve. We will handle all communications with the insurance company’s representatives and keep you fully informed as we fight on your behalf.
Insurance companies aim to safeguard their financial stability. Our legal team aims to protect your legal entitlements.
Contact us today to begin your journey towards justice and discuss the situation you need assistance with. We offer free consultations. Call us in Las Vegas at (702) 507-0201 or in Reno at (775) 322-6636.