What Happens When You Sue an Insurance Company?

What happens when you have to sue an insurance company? Your lawyer and the lawyer for the insurance company will investigate facts and the history of the dispute through a process called “discovery”. Discovery involves exchanging documents and conducting “depositions”. A deposition is a formal fact-finding process, under oath, conducted by the insurance company’s lawyer or your lawyer. Litigation isn’t the first step in dealing with an insurance company. Your attorney will negotiate for you to get what has and is rightfully yours. When an insurance company refuses to fulfill its obligations, then litigation becomes the next step in the process. Litigation is never taken lightly, nor is it a knee-jerk reaction. When and why is it necessary to sue your own insurance company? The answer is when the insurance company (or any of its representatives) is found to be in breach of contract or showing bad faith. A company shows bad faith when it unreasonably denies a legitimate claim, has failed to carry out proper investigations, caused undue delay in processing a claim, or disregards a policyholder’s rights or provides inadequate compensation on a claim. Most lawsuits end up settling before trial, and it is likely a suit against an insurance company will be settled through negotiations. Don’t be worried about landmines, call me now to be sure footed. www.michael-weinreb.com

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