Insurance Disputes

Insurance companies are powerful and necessary in today’s world.  But as truly beneficial as a good insurance company can be,  it is equally true that a bad insurance company is the very face of what is unjust and unacceptable in today’s division between the “haves and the have-nots”.   When they deny coverage after taking your payment of premiums for years,  and unfairly put you in the position of dealing with an uninsured loss, your sense of betrayal must be palpable.  Because they are  big and powerful,  all too often the attitude of insurance companies is that they cannot be called to account for their wrongful action.

But they are as bound by the law as anyone else, and in fact they can be made to account for their bad faith when they fail to honor their obligations.  One of the bedrock principles governing insurance contracts is that they are to be liberally construed in favor of the consumer if there is any ambiguity in the language used to create the policy. That means if the insurance company has unfairly tried to find a “loop hole” to escape coverage a court can punish them severely.

Although special damages,  including punitive damages,  may be available for bad faith breach of an insurer’s duty of fair dealing, this always requires a full and successful presentation of your case at trial.   This can be a long process and is not always in your best interest.  There is never any guarantee of success and the lost time involved is a major draw back. Therefore,  it is philosophy of Robert E. Sweeney Co., LPA in these kinds of disputes to do all that we can at the out set of the problem, to convince your carrier that your position concerning coverage is correct and bring the matter to conclusion quickly.  But when that is not possible we have the experience and expertise to take the case to court.

As in most legal settings you must be quick to take action when you suspect that your insurer is not living up to its obligations.  To the extent that you might have the basis of a bad faith claim that could justify punitive damages you must be aware that there is a short two year statute of limitations on such claims. Further,  your insurance contract  might provide that any claim to coverage under the policy must be made within a time that is shorter than the statutory period of limitations.  The policy language might not control this question,  but it is best not to take any chances.  It is always better to act sooner,  rather than later on these matters.