What Should You Do If Your Insurer Fails To Represent You?
If you've ever had an at-fault auto accident, you are probably somewhat familiar with the insurance claims process. Similarly, If you've been involved in an accident that was not your fault, you may remember your insurance company seeking compensation from the other driver's insurance company. In addition to these responsibilities, your insurance company has a duty to defend you against any claims or litigation resulting from your use of an insured vehicle. What happens if your insurance company fails to adequately defend you from a lawsuit -- or refuses to defend you at all? Read on to learn more about bad faith litigation and what you can do if you feel your insurer is lying down on the job.
What does your insurance company's duty to defend encompass?
Your auto insurance company has an express duty to come to your defense in any lawsuit alleging that you caused injury or property damage by using your insured vehicle. For example, if you are involved in a multi-car pileup and are later personally sued by the injured party, you shouldn't need to consult a private attorney -- your insurance premiums pay for an entire team of attorneys to work on your behalf in situations like this.
If your insurance company fails to mount a defense on your behalf, this can be considered an intentional tort (rather than a breach of contract). There are special rules that apply only to tort claims, and one such rule may work in your favor -- the ability to seek punitive damages, rather than just the actual damages assessed against you in the lawsuit. Punitive damages may often exceed the amount of actual damages.
What should you do if you believe you have a viable tort claim against your insurance company?
There are certain civil litigation attorneys who specialize in investigating and filing claims against insurance companies for violating the good faith defense requirements, such as Edward J. Achrem & Associates, Ltd. By consulting with one of these attorneys, you should be able to understand the strength of your claim and how best you should proceed.
In some cases, your insurance company's failure to defend you is indicative of a more widespread problem. In this case, you may be asked to join a class action lawsuit against your insurer for multiple good faith violations. There are specific advantages and disadvantages to class action lawsuits that you should discuss with your attorney.
The most notable advantage of joining a class action is efficiency -- rather than investigating and filing suit in dozens of similar but separate cases, your attorney will be able to consolidate investigations. However, if you do become part of a class action lawsuit, any potential settlement will need to be approved by every member of the class, which can delay the process.