Taking Legal Action: Can You Sue an Insurance Company?

If you are thinking about “Can I Sue an Insurance Company?” Certain conditions apply when suing the insurance company. Insurance companies can be sued for various reasons, including:

• Breach of Contract: Policyholders can sue an insurance company for breach of contract if the insurer does not honor the terms and conditions of a particular insurance policy. For instance, in case the insured claim is legitimate and should have been covered by the policy, refusing to pay can form a basis for a lawsuit.
• Bad Faith: In handling claims, insurers must exercise good faith legally. According to the law, policyholders can sue for bad faith if an insurance company unreasonably delays or denies a claim without proper justification, or engages in unfair claim-settling practices.
• Deceptive Practices: Policyholders can also sue for fraud or misrepresentation if the insurance company indulges in deceptive and fraudulent practices. Some examples of this could be a misrepresentation of the policy, and misstatement about coverage among other misleading acts.
• Interference with Contracts: Typically, a third party is able to sue an insurance company for its tort of interference with a contract. For example, an insurance company may be sued by a healthcare provider if it tries to discourage them from treating the insured person.
• Personal Injury Claims: In personal injury cases, the injured party can bring suit against the at-fault party and their insurance company. The same seeks damages from the insurer, which is supposed to cover the liability of the at-fault party.
• Subrogation Claims: Third parties may also be sued by insurance companies to recoup expended funds on behalf of their policyholders. To illustrate, if you were injured in a third-party accident and your health insurance paid for the costs of medical treatment, then this private insurer may sue that third party to recover such expenses.
• Regulatory Violations: Insurance companies that violate insurance laws and regulations can be sued by government regulatory agencies; individual victims of the violation process may also take legal action against such insurance.

Also, it must be considered that bringing a lawsuit against an insurance company is a difficult and protracted litigation. If you feel that there is a legitimate reason to take an insurance company to court, it may be wise to seek consultation from a legal expert, such as Omar Ochoa Law Firm, with expertise in insurance or contract law. An attorney will help you through the legation process, build the case, and represent your interests adequately.