Meet Your Insurance Bad Faith Lawyers in Nevada
Insurance bad faith attorneys help you when your insurance company fails to uphold its promises. After paying your premiums on time, you expect fair treatment and timely responses, but unjust claim denials, unreasonable delays, or vague policy interpretations can leave you completely abandoned. The process of pursuing a legitimate claim often becomes a frustrating cycle—every time you think you’ve met the insurer’s demands, another obstacle appears.
This isn’t a fight you have to face alone. At Clear Counsel Law Group, their legal team is ready to stand with you against unfair and illegal practices by insurance companies. With a deep understanding of insurance laws and a steadfast dedication to holding companies accountable, they are more than attorneys—they are your advocates, ready to challenge the tactics insurers use to delay or deny rightful claims.
What is Insurance Bad Faith?
Insurance bad faith occurs when an insurer fails to meet its obligations to policyholders honestly and promptly. When you purchase an insurance policy, you’re entering a contract with your insurer, built on the understanding that if you experience a covered loss, they will uphold their end of the agreement. This includes providing timely and fair compensation within the policy’s terms. However, some insurance companies fail to honor this promise, leaving policyholders to deal with the fallout. Insurance bad faith attorneys can help policyholders when the insurance wont.
Bad faith isn’t just a broken promise—it’s a violation of the agreement you relied upon for protection. After you’ve met your obligations, the insurer’s refusal to fulfill theirs undermines the core of the contract: providing security and support during difficult times. Bad faith can take many forms, such as unreasonable delays in processing claims, inadequate investigations, outright refusals to defend lawsuits, or offering settlements far below the claim’s actual value.
When an insurer breaches their duty, the consequences can be serious. Legal action becomes necessary to ensure the company is held accountable for honoring their commitments. Experienced personal injury attorneys recognize that every policy represents more than a contract—it’s a lifeline for individuals and businesses. When bad faith disrupts this lifeline, they work tirelessly to restore what was promised.
Negligence in Insurance
Negligence in insurance occurs when a company fails to exercise the level of care expected in handling claims. This might involve overlooking key details, failing to act in a timely manner, or mishandling the claims process. Legally, insurers are expected to act as reasonably prudent companies would under similar circumstances. When they don’t, their inaction or mistakes can have severe consequences for policyholders. Policyholders then have the right to seek fair compensation for those consequences.
Negligent handling of a claim, such as delaying necessary payouts or ignoring critical aspects of the agreement, can cause direct harm. For instance, delayed compensation might leave policyholders facing mounting financial stress or unresolved property damage. In these cases, negligence is not just poor service—it’s a breach that results in real financial and emotional harm to those relying on the insurer’s promises.
Bad Faith Examples
Insurance bad faith often feels hidden behind policy fine print and complex processes, making it challenging for policyholders to recognize when their insurer isn’t acting as they should. These situations are more common than many realize. So how can you know when an insurer has overstepped? What’s the difference between denying a claim and bad faith? Here are some real-life examples we’ve seen as insurance bad faith lawyers:
One example is unreasonable delays. Insurers are expected to process claims in a timely manner, but when delays stretch on without valid reasons or updates, it may be an attempt to frustrate the claimant into settling for less or giving up entirely. Such tactics betray the trust policyholders place in their insurers when they need assistance the most.
Inadequate investigations are another way insurers fail their obligations. When you file a claim, the insurer must investigate thoroughly and fairly, taking into account all evidence and consulting experts when necessary. If they conduct only a superficial investigation or ignore key details, it can lead to unfair outcomes. This lack of diligence shows a disregard for the policyholder’s right to a just resolution.
Unjust claim denials are perhaps the most blatant form of bad faith. Sometimes insurers deny claims outright or pay far less than what the policy entitles the holder to, often citing obscure or misapplied policy terms. When these denials lack a reasonable basis, it becomes clear the insurer is prioritizing their own financial interests over the promises they’ve made.
Finally, a failure to communicate can leave policyholders feeling abandoned. Insurers are obligated to keep their customers informed about the status of claims, settlement offers, or any changes that could impact coverage. When communication breaks down, policyholders may miss critical updates, causing unnecessary stress and potentially harming their financial or legal standing.
In our opinion, if your insurance company does not protect you, they are engaging in bad faith. The biggest way this happens is when they fail to uphold their “duty to defend.”
Duty to Defend
Insurance bad faith isn’t limited to unfair actions against a policyholder; it can also arise when an insurer fails to fulfill its duty to defend. When policyholders face legal claims, insurers are obligated to step in and provide a defense, even if the claims against them are later found to be baseless or fraudulent. This duty is as significant as the coverage itself, as it directly impacts the policyholder’s financial and legal stability during a challenging time.
The insurer’s responsibility goes beyond merely acknowledging the claim—it involves actively managing the legal defense on behalf of the policyholder. This includes covering the costs of litigation and providing qualified attorneys to represent the policyholder’s interests. By taking on these burdens, insurers are expected to shield policyholders from the financial strain and stress that legal proceedings often bring. Failing to meet this obligation undermines the fundamental purpose of the policy and can constitute bad faith, leaving the policyholder vulnerable and unprotected.
Proving Bad Faith
Proving bad faith involves uncovering the insurer’s true motives and actions. It’s not sufficient to show that the insurer made a mistake; you must establish that they knowingly denied a claim without a valid reason or acted with reckless disregard for the truth. The focus is on demonstrating that no reasonable insurer, facing similar circumstances, would have taken the same actions.
If you believe your insurance company is acting in bad faith, it’s important to take proactive steps to address the issue. Start by keeping a detailed record of all communications with the insurer, noting dates, times, and what was discussed. Request written explanations for any claim denials or delays, as these can provide insight into the insurer’s reasoning. Additionally, gather supporting evidence for your claim, such as photographs, repair estimates, or expert evaluations. These details can help strengthen your case if you need to contest the insurer’s decision.
While this process can feel overwhelming, having an insurance bad faith attorney on your side can make a significant difference. Their expertise ensures your rights are protected and that your insurer is held accountable for their actions.
Protections Against Bad Faith
State Laws
In Nevada, there are laws in place that protect consumers from bad faith insurance practices. These are covered under NRS 686A.310. These laws provide a framework for policyholders to hold insurance companies accountable when they do not act in accordance with their obligations. The Nevada Division of Insurance enforces these laws and regulations so that insurance companies conduct their business fairly and lawfully.
Policyholder Rights
As a policyholder, you have specific rights that are designed to protect you from unfair treatment by your insurance company. You have the right to receive a prompt and fair response to your insurance claims, the right to a thorough and objective investigation of the claim, and the right to have your policy terms interpreted reasonably and without bias. If an insurer violates these rights, policyholders may have legal recourse to seek compensation for the damages caused by the bad faith actions.
What Damages Can Be Collected In A Bad Faith Case?
When a policyholder successfully proves bad faith in an insurance case, the damages awarded aim to repair the harm caused by the insurer’s actions. So any harm that can be shown to have happened because the insurance company failed to do its job is now a valid consideration for damages. These damages are meant to address both the financial and emotional toll of the situation, ensuring the policyholder is properly compensated for what they’ve endured–and what they never should have had to endure.
Contractual damages are at the heart of these cases, covering the amount the insurance company was initially obligated to pay under the policy. This represents the core of what was denied when the insurer failed to act in good faith. Beyond this, consequential damages may be awarded to address the ripple effects of the insurer’s misconduct. For example, if delayed payments forced you into debt or led to other financial hardships, these additional losses can be recovered.
Emotional distress can also be a significant factor. The stress, frustration, and anxiety caused by dealing with bad faith practices often extend far beyond monetary concerns, and courts recognize the need to compensate for this emotional impact. Additionally, attorney’s fees may be covered, ensuring that the financial burden of seeking justice doesn’t fall on the policyholder.
In cases of extreme misconduct, punitive damages may be awarded. These damages go beyond compensation and are meant to penalize the insurer for egregious behavior while serving as a warning to others in the industry.
The Role of Punitive Damages
Punitive damages send a powerful message to both the offending insurer and the broader insurance industry. They highlight that malicious, reckless, or willfully negligent actions come with significant consequences. By imposing these penalties, courts reinforce the expectation that insurers must act with integrity and fairness.
These measures aren’t just about financial punishment—they reflect the legal system’s commitment to protecting policyholders and maintaining trust in insurance practices. They ensure that companies are held accountable when they prioritize profits over people, reinforcing the principle that good behavior is not optional.
Why Hire an Insurance Bad Faith Attorney
Hiring an insurance bad faith attorney ensures that your rights are protected and that your insurer is held accountable for unfair practices. These attorneys bring the knowledge and experience needed to challenge insurance companies, helping clients secure the compensation they deserve.
Insurance policies are notoriously complex, filled with dense legal language and layered stipulations designed to protect the insurer’s interests. Deciphering these documents can be overwhelming for policyholders, especially when faced with bad faith actions. Attorneys who handle insurance bad faith cases are adept at interpreting these policies and identifying where insurers have overstepped. By challenging vague or unfair terms, they level the playing field and ensure that policyholders are not disadvantaged by confusing fine print.
Bad faith litigation requires more than just responding to an insurer’s actions—it calls for a proactive, strategic approach. Attorneys anticipate the tactics insurance companies might use to delay or deny claims and craft responses that counter these moves effectively. This strategy strengthens the policyholder’s position and ensures their case is presented clearly and persuasively.
Ultimately, the goal of an insurance bad faith attorney is to maximize the recovery for their client. They go beyond the surface to address all the losses caused by the insurer’s misconduct, ensuring that policyholders receive the full compensation they are owed—not just the amount the insurer is willing to offer. This dedication to securing justice provides peace of mind during an otherwise stressful and challenging process.