Did your insurance company deny your claim without explanation? Are they delaying payment even though you followed all the rules? Unfortunately, bad faith insurance practices happen more often than they should, leaving policyholders frustrated and financially strained.

Louisiana law doesn’t let insurers get away with unfair claim handling. Companies that act in bad faith can face penalties, owe additional damages, and may even be required to cover your attorney fees.

If you believe your insurance company has wrongfully denied your claim or is delaying payment without a valid reason, it’s crucial to understand your rights and take action.

What Is Bad Faith in Insurance?

Bad faith insurance happens when insurers try to avoid paying a valid claim. This can include unnecessary delays, lowball settlements, or outright denials without justification. In Louisiana, the law requires insurance companies to handle claims fairly; for instance, by paying the claimant within 30 days of an agreement.

If they fail to do so, they may be acting in bad faith.

Examples of Bad Faith Insurance Practices

Bad faith tactics can take many forms, including:

  • Denying a Valid Claim Without Proper Justification: The insurer provides vague reasons or no reason at all for rejecting your claim.
  • Twisting Policy Language to Deny Claims: Insurers may manipulate wording to justify a low offer or outright denial.
  • Unreasonable Delays in Processing Your Claim: If an insurance company drags out the investigation for no apparent reason, they may be acting in bad faith.
  • Failing to Conduct a Proper Investigation: Some insurers deny claims without thoroughly reviewing the facts or evidence.
  • Making Unreasonably Low Settlement Offers: Offering far less than a claim is worth, hoping the claimant will accept out of financial desperation.

If you experience any of these tactics, a Louisiana personal injury lawyer can review the situation and determine what actions can help resolve your case.

What To Do if You Suspect Bad Faith

If you suspect bad faith actions from an insurer, take the following steps to protect your rights:

  • Review Your Insurance Policy: First, carefully review the terms of your insurance policy. Make sure you understand the coverage you are entitled to and verify whether your claim falls within those terms. Look for any exclusions or conditions the insurer may try to use against you.
  • Request a Written Explanation: If your claim was denied, ask for a written explanation detailing the reasons for the denial. Louisiana law requires insurers to provide a clear justification for rejecting a claim. If the response is vague or inconsistent, it could be a red flag that the insurer is acting in bad faith.
  • Gather Evidence: Keep thorough documentation of all communication with your insurer, including emails, letters, and phone call logs. Also, gather evidence related to your claim, such as medical records, police reports, repair estimates, and witness statements. This documentation will be crucial if you need to take legal action.
  • File a Complaint: You can file a complaint with the Louisiana Department of Insurance (LDI) if you believe your insurer is acting in bad faith. The LDI investigates consumer complaints against insurance companies and may take regulatory action if necessary.
  • Hire a Personal Injury Lawyer: One of the most effective ways to combat bad faith insurance tactics is to hire an experienced Louisiana personal injury lawyer. Insurance companies often try to take advantage of policyholders who don’t have legal representation, but they are far less likely to engage in bad faith tactics when they know a skilled attorney who knows what is and isn’t legally allowed is representing you and fighting for your best interests.
  • Consider Filing a Bad Faith Lawsuit: Louisiana law allows policyholders to sue insurance companies for bad faith practices. If your insurer is found guilty of acting in bad faith, you could be entitled to penalties of up to 50% of the damages sustained or $5,000, whichever is greater, along with attorney fees and costs incurred due to the violation.

Why Hiring a Lawyer Makes a Difference

Insurance companies frequently deny or delay claims because they believe claimants won’t challenge them, either out of fear, frustration, or lack of knowledge. However, when you bring in a lawyer, insurers recognize they can’t continue using these tactics. A skilled attorney can:

  • Negotiate aggressively on your behalf to help you receive a fair settlement.
  • File a lawsuit if necessary to hold the insurer accountable.
  • Advise you on your legal rights and options so you don’t fall victim to unfair tactics.

Sometimes, just the presence of a lawyer is enough to stop an insurance company from trying to delay or deny a valid claim. Insurers know that attorneys understand the law and won’t let them get away with bad faith practices.

Schedule a Free Consultation Today

If you suspect your insurance company has denied your claim in bad faith, don’t accept their decision without a fight. Review your policy, gather evidence, and seek legal help immediately.

Our experienced personal injury lawyers at Dudley DeBosier know how to deal with unscrupulous insurers. We’ll help you hold the insurer accountable and win the fair settlement you deserve for your injuries and other damages.

Don’t wait while your insurer plays games with your claim. The sooner you take action, the better your chances of securing fair compensation. Contact us today for a free consultation so we can help resolve your injury claim.

Disclaimer: This content has been reviewed by Chad Lederman, Director of Legal Operations at our New Orleans office.