To continue with our series about dealing with insurance companies acting in bad faith, we will highlight another case we handled. Unlike the blog we published last month, we will look at this case through the lens of diligent and prompt investigations.
The Story
In this example, the defendant was a contractor, and the insurance company conducted an investigation. (We represented the plaintiff.) The case was based on a lot of evidence that was discovered about the defendant. They had built the frame and the scaffolding for the house, which refers to the structural foundation. The frame or skeleton of the house not only forms the shape of the property, but it has to be erected to support the other elements, such as the walls, roofs, and floors. Scaffolding speaks to the temporary structures workers use when working at elevated heights.
Without adding too many unnecessary details, the defendant had done a poor job on both accounts. Our client was a plumber who had become severely injured when the scaffolding he was on collapsed. We learned that the framers had used the wrong-sized nails and had done other things incorrectly when they created the scaffolding. However, as we were getting closer to trial, the insurance company took a step back because they claimed they had made a mistake in the investigation. What was the issue? The structure was a condo, but the coverage was only for single-family homes.
Ultimately, we obtained a judgment against the defendant. We also got an assignment to pursue the bad faith case because the insurance company should have learned that the building was a condo instead of a single-family home much sooner. Essentially, they increased the exposure to their insured. As it turns out, the adjuster hired on the case did not do the investigation they said they had. They had not conducted any investigation into the property itself. This is a prime instance of an insurance company “rubber stamping” the claim. They didn’t know whether it was a condo, a single-family home, or whether it would be covered. Because the insurance company did not do the job they were supposed to do, it caused an undue delay for our client.
The Tip
One of the things we recommend is constantly dealing with the insurance company in writing. Although that sounds obvious, it means favoring emails and letters over phone calls. Ask questions. If they come back and deny your claim, ask (in writing) why they did so, request the policy, and what language they are pointing to to deny your claim. You must get this information because, later on, your attorney will be looking at this documentation. If the insurance company did work in bad faith, there is evidence that speaks to it.
Though it didn’t happen in the previous story we discussed, offering an unreasonably low settlement offer is a form of acting in bad faith. When this happens, we can repeatedly send (in writing) why their claim is unreasonable—and we can demand an explanation. We can reinforce our position by stating the seriousness of the injuries and why the offer doesn’t reflect what happened. Should an issue go to trial, this will show their tactic. We have gone to trial and gotten judgments over the policy limit because of the evidence that supports our position.
Get in Touch with Howell, LLP
When you or someone you love is navigating the underhanded tactics that insurance companies operating in bad faith employ, you need an advocate in your corner. Howell, LLP is equipped to ensure you are treated fairly. You deserve fair compensation; we are here to help you receive it. Don’t let insurance companies intimidate or shortchange you. Contact our office today to schedule your free consultation.
