Insurance is meant to be a safety net during life’s most challenging moments. When you faithfully pay your premiums, you expect your insurance company to honor your claim if something unexpected happens. However, not every insurer acts in good faith. Sometimes, they unjustifiably deny, delay, or underpay valid claims. When this happens, the insurer may have acted in bad faith.
A bad faith insurance claim arises when an insurance company fails to treat a policyholder fairly, honestly, and promptly as the law requires. At DiBella Law Injury and Accident Lawyers, we are passionate about protecting the rights of policyholders across Massachusetts. Our team stands beside individuals facing bad faith insurance practices with empathy, experience, and a strong sense of justice.
The Basics of the Insurance Contract and Duty of Good Faith
An insurance policy is a contract between a policyholder and an insurance company. The insurer promises to provide financial protection for a covered loss in exchange for regular premium payments. However, the relationship goes beyond the express written terms. It also imposes a legal duty known as the “implied covenant of good faith and fair dealing.”
This covenant means the insurance company must act fairly, honestly, and in good faith when handling claims. Policyholders place their well-being and financial security in the hands of their insurers. This duty exists to ensure insurance companies meet their lawful obligations to policyholders.
Examples of Bad Faith Insurance Practices in Massachusetts
Insurance companies are legally obligated to handle claims fairly, but that doesn’t always happen. Here are some common examples of bad faith insurance practices that policyholders in Massachusetts may encounter.
Unreasonable Delay in Handling a Claim
Insurance companies have a responsibility to process claims promptly. An insurer needlessly dragging out an investigation or delaying payment on a claim can leave policyholders financially and emotionally drained.
If such delays result from neglect, repeated unnecessary requests for information, lack of communication, or deliberate stalling to pressure the policyholder into accepting a lower settlement, the delay may constitute bad faith under Massachusetts law.
Unreasonable Denial of a Valid Claim
Denying a claim is not automatically bad faith insurance. However, rejecting a valid claim without conducting a thorough investigation, claiming exclusions that don’t apply, unjustifiably assigning blame to the insured, or ignoring evidence crosses the line. Policyholders are entitled to a fair evaluation of their claims, not arbitrary and capricious denials.
Failure to Adequately Investigate a Claim
Insurance companies must conduct prompt, complete, and fair investigations before making claim decisions. An insurer may engage in bad faith insurance practices if it ignores critical evidence, fails to interview relevant witnesses, only explores one side of the story, or otherwise conducts a shallow investigation.
Lowballing a Settlement Offer
While negotiations are a normal part of handling a claim, offering a settlement figure significantly lower than the claim is worth without justification is an example of bad faith. This practice pressures policyholders into accepting less than they deserve when they’re most vulnerable.
Misrepresenting Policy Language
Insurers cannot mislead a policyholder by twisting, misinterpreting, or selectively quoting policy provisions to deny or undervalue a claim. This tactic violates the duty of good faith and can be a clear basis for a bad faith insurance lawsuit.
Failure To Communicate Properly With the Policyholder
Massachusetts law requires insurers to keep policyholders informed about the status of their claims. Ignoring calls, withholding updates, or failing to explain decisions clearly may constitute bad faith insurance.
Your Rights as a Policyholder in Massachusetts
As a policyholder, you are not powerless against unfair treatment. Massachusetts law provides strong protections against bad faith insurance practices. You have the right to the fair, timely, and honest processing of your claim. Insurance companies must offer a reasonable explanation for any claim denial or delay and honor the coverage promised in your policy.
When insurers fail to meet these obligations, you may have the right to pursue additional damages through a bad faith insurance lawsuit. Understanding and asserting your rights is the first step toward holding insurers accountable for their conduct.
What To Do If You Suspect Bad Faith Insurance Practices
If you think your insurance claim was denied in bad faith or your insurer has mistreated you in another way, please act promptly and strategically to protect yourself. Here are the steps we recommend:
- Document everything: Start by maintaining detailed records of all communication with the insurance company, including emails, letters, and phone call notes. Keep copies of your claim details, the insurer’s responses, and any conduct you believe is unfair or dishonest.
- Review your insurance policy: Insurers sometimes rely on the complexity of policy language to confuse or mislead claimants. Review your policy’s specific terms, conditions, and coverages to know if your rights have been violated.
- Communicate in writing: Whenever possible, shift your communication to writing. Written documentation creates a clear, permanent paper trail that may prove valuable if you need to pursue a bad faith insurance claim later.
- Seek legal counsel: Insurance companies have powerful legal teams. You should have an advocate on your side, too. Consult an experienced attorney at DiBella Law to protect your rights and put you in a stronger position if litigation becomes necessary.
How DiBella Law Injury and Accident Lawyers Can Help With Bad Faith Claims
With over 20 years of experience, we have successfully represented clients in bad faith insurance matters throughout Massachusetts. We are familiar with insurers’ tactics and know how to challenge them effectively.
Our firm has secured millions of dollars in settlements and verdicts for our clients over the past two decades, including numerous recoveries in insurance bad faith claims.
When you work with us, expect to receive compassionate, skilled legal representation focused on making the toughest time in your life easier. We will do the following:
- Thoroughly investigate your case.
- Analyze the insurer’s actions.
- File a bad faith claim and litigate your case.
- Advocate fiercely for your rights.
Remedies in bad-faith insurance claims can include the full amount of your claim, injunctive relief, treble damages in some cases, and attorney fees. It is unacceptable for insurers to betray the trust of their policyholders, and we’ll hold them fully accountable for their misconduct.
Don’t Let Your Insurance Company Act in Bad Faith–Know Your Rights and Seek Help
Bad faith insurance undermines the very purpose of having insurance in the first place: security, peace of mind, and support during difficult times. If you suspect your insurer has wrongfully delayed, denied, or underpaid your claim, don’t face your battle alone. An experienced and knowledgeable lawyer can level the playing field, protect your rights, and fight back against bad faith practices.
DiBella Law is here to fight for you. If you’re hesitant to involve an attorney, rest assured that you can test drive our services risk-free during a 30-day trial period. If unsatisfied, you can cancel your agreement without penalties or financial obligations.
We will treat your case with the care and attention it deserves. As part of our commitment to top-notch client service, you’ll always hear back from us if you call with a question. Our experienced personal injury attorneys are ready to help. Contact us today at (617) 870-0907 for a free consultation.