What is Insurance Bad Faith?
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Our Injury Attorney Explains This Area of Law
In this video, injury lawyer Deborah Gander discusses what is expected of insurance companies after their insured are involved in motor vehicle accidents, as well as what could happen if carriers refuses to act with a duty of good faith when compensating for damages. The accident attorneys of Colson Hicks Eidson can work on behalf of individuals in insurance bad faith claims to obtain any damages that they are rightfully owed. Speak with us today to learn about your ability to file an insurance bad faith lawsuit.
Insurance bad faith is an area of the law where an insurance company owes a duty of good faith to the insured. Not to the person they injured, but to the insured. So if an insurance company can settle a lawsuit against their insured, within the policy limit, they are obligated to do so. Because if they don’t settle within the policy limits, and that person gets sued and they go to trial, the individual who is insured is responsible for the excess verdict.
For example, if someone driving a car carries $100,000 of insurance, and he causes an accident where the realistic damages are going to be a million dollars, if the insurance company can settle the case for a $100,000 and get the insured released, it’s over. If the insurance company wants to hold on to its money and put the insured at risk, if a verdict comes back against that insured for a million dollars, he is personally responsible for $900,000 of that verdict.
That could be all of his assets, wages in the future and the law allows the person who is injured to take an assignment from the insured, and go and then sue the insurance company to get the additional $900,000 that that person is only liable for because the insurance did not do its job in the first place. For more information call us, Colson Hicks Eidson, 305-476-7400 or check us out on the web: colson.com