New York Bad Faith Insurance Attorney

Negotiating with an insurance company after getting in an accident can be tricky, even in the best of times. Hopefully, the insurer will thoroughly investigate your claim and offer a settlement that fairly covers your financial needs, allowing you to move on with your life confident that the cost of your accident is covered.

Unfortunately, this isn’t always the case.

Sometimes, insurance companies enter into negotiations without any intention of offering a fair settlement or even offering a settlement at all. These intentions and the methods insurance companies use to employ them are considered bad faith. 

The Perecman Firm’s New York City Bad Faith Insurance Attorneys know how to fight back against bad faith. We have a track record of success in holding insurance companies accountable for bad faith.

If the insurance company is found liable for negotiating in bad faith, it could be punished with large fines and punitive damages.

Tell us about your case in a free evaluation through our online form.

What Does “Bad Faith” Mean?

Bad faith is a term used when an insurance company improperly denies a claim without a reasonable basis or refuses to offer a settlement consistent with claims of a similar nature without a reasonable explanation. 

Insurance providers, like any organization, company, or person that enters into a contract, are expected to negotiate with honesty, fairness, and in “good faith.” This includes thoroughly investigating any claim to offer a reasonable settlement based on the relevant factors.

Common Types of Bad Faith Insurance Practices

Along with failing or refusing to investigate a claim, there are several ways an insurance company could display bad faith negotiation tactics:

• Taking an unreasonable amount of time to respond to your claim
• Failing to provide clear reasoning as to why your claim was denied or the amount offered was low
• Improperly citing laws in an attempt to give an explanation for an inadequate settlement offer or denial
• Withholding information or delaying negotiations in an attempt to allow the statute of limitations to expire
• Using false information, including medical or legal terms, in an attempt to justify a low settlement offer or claim denial

Call us at (212) 977-7033 to speak with one of the NYC bad faith insurance lawyers at The Perecman Firm. We will evaluate your case, and if we find that it's eligible for compensation, we will arrange a free consultation to discuss it in further detail and explore your legal options.

Understanding Bad Faith Insurance Claims in New York

Bad faith insurance claims occur when an insurance provider fails to uphold its duty of good faith and fair dealing toward policyholders. In New York, both common law and statutory protections exist for policyholders facing bad faith practices.

New York Insurance Law Section 2601

New York law helps ensure that insurance providers act fairly and in good faith when handling claims. When insurers fail to adhere to these specific standards, they may face legal consequences, including penalties and potential damages awarded to the policyholder. This statute outlines specific unfair claim settlement practices prohibited by law, such as:

• Misrepresenting policy provisions
• Failing to acknowledge and act promptly on claims
• Not implementing reasonable standards for investigating claims
• Delaying payments without proper justification
• Offering substantially less than what is due under the policy without explanation

If you believe the insurance company acted in bad faith by engaging in these practices, you may have grounds for a bad faith insurance claim. 

At the Perecman Firm, our New York insurance dispute attorneys can hold insurance providers accountable, seeking compensation and justice for our clients. 

Proving Bad Faith in New York

To establish a bad faith claim against an insurer in New York, your attorney will generally need to demonstrate two key elements:

1. Benefits due under the policy were withheld – This means that you were entitled to compensation under your insurance policy but did not receive it.
2. The reason for withholding benefits was unreasonable – The insurer’s actions must lack justification or violate industry standards for fair dealing.

The Perceman Firm’s experienced legal team is dedicated to leading clients through complex insurance laws and procedures to help you obtain the compensation you deserve.

Damages Available in Bad Faith Cases

In a successful bad faith insurance claim, you could recover far more than just the original claim amount. Beyond securing the compensation the insurance company initially owed, you may also be entitled to damages for financial hardships caused by the insurer’s misconduct.

The damages you may be able to recover include:

• Payment of the original claim amount – The compensation you were initially owed under your policy.
• Consequential damages – Additional costs incurred as a result of the insurer’s bad faith actions (for example, financial hardship caused by delays).
• Attorneys’ fees – Legal expenses associated with pursuing your case.
• Punitive damages – In extreme cases where the insurer’s conduct was particularly egregious, courts may award punitive damages as punishment and deterrence.

Working with an experienced insurance lawyer can help you to recover not just the compensation the insurance company unlawfully denied you, but additional damages as well. Let us help you maximize your recovery.

Steps to Take If You Suspect Bad Faith

If you suspect that your insurance company is acting in bad faith, take these steps to help protect the value of your potential claim:

1. Document all communications – Keep detailed records of every phone call, email, and letter exchanged with your insurer.
2. Request written explanations – Ask for written reasons for any claim denials or delays.
3. Keep copies of all documents – This includes your insurance policy, medical records (if applicable), and evidence of damages (e.g., photos or receipts).
4. Consult with an attorney – A skilled bad faith insurance attorney can evaluate your case and help you take appropriate legal action if necessary.

The Importance of Legal Representation

Insurance companies have a vested interest in keeping their settlement offers low—but when that interest becomes more important than adequately serving their customers, they may resort to bad faith negotiation tactics. If this happens, hiring an experienced law firm can make all the difference in securing the financial compensation you deserve.

Our attorneys can:

• Evaluate the strength of your case
• Gather evidence supporting your claim
• Negotiate directly with insurers on your behalf
• Represent you in court if necessary

Recent Developments in New York Bad Faith Law

The legal landscape surrounding bad faith insurance claims is constantly evolving in New York. Recent court decisions and legislative updates may impact how lawyers handle bad faith insurance disputes and what damages are available to plaintiffs.

For example:

• Changes in how courts interpret "unreasonable conduct" by insurers
• Updates on punitive damage caps for egregious cases

Contact us today if you need legal guidance for a bad-faith insurance dispute. Our team of experienced attorneys stay up to date on the cases and laws affecting insurance disputes and how they may afect your specific claim.

Frequently Asked Questions About Bad Faith Insurance Claims

What is considered bad faith by an insurance company?

Bad faith occurs when an insurance company fails to act honestly and fairly in handling a claim. Examples include denying claims without justification, delaying payments, or offering unreasonably low settlements.

How can I tell if my insurance company is acting in bad faith?

Signs of bad faith include:

• Lack of communication or unreasonable delays in responses
• Denial of your claim without a valid explanation
• Misrepresentation of your policy terms or coverage
• Attempts to pressure you into accepting a low settlement

What should I do if I suspect bad faith?

If you believe your insurer is acting in bad faith:

1. Document all interactions with the insurer.
2. Request written explanations for any denial or delay.
3. Consult a bad faith insurance attorney to review your case.

Can I sue my insurance company for bad faith?

Yes, if you can prove that the insurer acted unreasonably and violated their duty of good faith and fair dealing, you may file a lawsuit seeking compensation for damages caused by their actions.

What damages can I recover in a bad faith insurance lawsuit?

You may be entitled to:

• The original claim amount owed under your policy
• Consequential damages (e.g., financial losses due to delays)
• Attorneys’ fees and court costs
• Punitive damages in cases of egregious misconduct

How long do I have to file a bad faith claim in New York?

The statute of limitations for filing a bad faith claim depends on the type of insurance policy and the nature of the claim. Consulting an attorney promptly ensures that you don’t miss important deadlines.

Does hiring an attorney guarantee success in my case?

While no attorney can guarantee success, experienced bad faith insurance lawyers significantly improve your chances by building a strong case, negotiating effectively, and representing you in court if necessary.

Why Choose The Perecman Firm for your New York Bad Faith Insurance Case?

Our team of New York City bad faith insurance attorneys at The Perecman Firm has been representing clients for over 40 years. We have successfully recovered nearly a billion dollars in verdicts and settlements. This is a legacy built on experience, dedication, skill, and hard work – and these same qualities have earned us the trust of New Yorkers. 

We understand how frustrating it can be when insurers fail to honor their commitments, and we will hold them accountable. Let us fight for your justice and maximum compensation. 

Fill out the form on our website for a free case evaluation or call us at (212) 977-7033 to set up a meeting with one of our NYC attorneys today.