By paying their premiums, Policyholders entrust their money to insurance companies as a way of spreading the risk of loss among a group of individuals or businesses.  The insurance company’s job is to collect premiums, hold and monitor the money, and distribute it fairly and quickly to those claimants who suffer a covered loss. 

The insurance company earns a fee for its work and can invest certain amounts of money while it holds it. But generally, the money is to be held for the benefit of policyholders who need it. 

In this sense, an insurance company is similar to a bank. It is for that reason the insurer-insured relationship is considered a special one under the law.  Due to that special relationship, an insurance company has specific obligations and duties to its policyholders, all of which arise from the foundation that an insurance company cannot put its own interests before those of its policyholders. 

If an insurance company fails to put its policyholders’ interests first, and the policyholder suffers damages as a result, the policyholder can file a “bad faith” claim against its insurance company. 

Every month, you pay your insurance premium, knowing that, even though most of the time you do not need it, you can rest easy with the knowledge that if you do, coverage will be there for you. Imagine the shock so many Americans receive when it comes time to make a legitimate claim on their insurance and the claim is wrongfully denied. Whether it is a claim to cover health care costs or an accident claim on one’s car insurance, insurance companies seem to have more loyalty to their stockholders than they do to their policy holders. This kind of practice is known as “bad faith,” and experiencing it can wreak havoc on your finances, as well as your belief in the insurance system. The best plan of action if you have suffered from a denied insurance claim, is to consult an Illinois bad faith insurance attorney to help you build a solid case to get the compensation you paid for and deserve. Serving most of Illinois, the Giacoletto Law Firm will fight the big name insurance companies for you and your family.

If an insurance company fails to pay a claim on a policy and the company wrongly denies coverage and violates an insurance contract, a breach of contract claim will allow recovery up to the policy’s face value. If the insurance company violates its fiduciary duty to its insured in breaching that contract, a plaintiff can sue the insurance company for bad faith and possibly recover both compensatory and punitive damages in addition to the value of the policy.

For a bad faith claim to be made, the insurance company has to have made serious violations in the handling of the claimant’s insurance claim. Possible bad faith violations include, but are not limited to:

  • Wrongfully denying a claim
  • Delaying or failing to investigate a claim
  • Failing to defend or settle a lawsuit
  • Failing to process or settle a claim in a timely fashion

Proven Representation

You should seek assistance from an attorney with experience in bad faith insurance claims. The Giacoletto Law Firm has aided many clients who have had their insurance company fail to meet their legal obligations. We can conduct a full investigation into the insurance company, revealing its failings in the handling of your claim. With this evidence combined with our personal injury experience, we can help you hold your insurance company responsible, seeking damages to compensate you for your financial losses.

For more direct answers to your questions, call the Giacoletto Law Firm at 618-346-8841or toll free at 888-346-8841 to speak today with an experienced Madison or St. Clair County bad faith insurance lawyer centrally located in Collinsville.

Steve Giacoletto
Collinsville Personal Injury Attorney