When your insurance company is facing a lawsuit in Kentucky for bad faith, we at Fowler Bell know that you want the matter dealt with as quickly and discreetly as possible, preferably at a minimum of expense to you. Methods of alternative dispute resolution, such as mediation and arbitration, offer you distinct advantages over litigating the matter in court.
According to upcounsel, a person or entity is guilty of bad faith if he or she does something immoral in a legal matter. Something "immoral" may include not following through with contractual obligations, entering an agreement you know you will not honor, knowingly giving the wrong idea to others regarding legal matters and acting deceitfully in a legal capacity. If you commit bad faith as an insurer in Kentucky, the insured party against whom you committed the offense can file a lawsuit over breach of trust. If the courts find you guilty, you may be in a world of legal trouble. For this reason, it is imperative that you know what insurance bad faith looks like so you can avoid it.
According to FindLaw, Kentucky insurers have a duty to act with good faith when handling a claim. "Good faith" means that insurers must thoroughly investigate each claim, respond to each claim promptly, to pay or deny the claim within a reasonable time frame and, if denying the claim, to provide a thorough explanation detailing the reasons for the denial. FindLaw further details what breach of duty may look like.
The insurance field is very unpredictable. That is the nature of the game. However, insurance companies in Kentucky have to prepare for anything. This includes issues with customers and with the industry in general. Here is a look at some insurance issues companies may face in the near future, according to Property Casualty 360.
At Fowler Bell PLLC, we do not expect our clients to stay abreast of all of the statutory and case law changes in Kentucky that could affect their businesses. In fact, we expect the opposite -- that they are too busy focused on providing insurance services to their own clients to bother with subtle alterations in the state's legal system.
For many people in Kentucky, having reliable health care insurance is critical to their ability to finance unexpected costs associated with various trips to the doctor and treatments. Having insurance is important for people to stay protected in circumstances where unanticipated injuries or illnesses occur. However, there are times when people may be surprised to find out that their claim was denied by their provider.
While insurance companies provide consumers with clarity in clauses that discuss protection against certain elements, there are times when disputes are made about who is responsible for footing a bill. Many insurance companies in Kentucky go to extensive efforts to give policy holders an accurate description of the reach of their services. In situations where consumers are claiming they need assistance, but their insurance company disagrees, they have the option of defending their opinion and reasoning for not extending assistance to said policy holders.
Having the proper insurance to cover your assets is important. When you own a home, you get homeowners insurance that covers your home and your belongings inside the home. However, when you rent, you do not need coverage on the structure because you do not own it. That is why you would get renters insurance.
If you have a business where you offer professional services, then you have special insurance needs. Your Kentucky insurance coverage should include professional liability insurance. You may also see this referred to as errors and omissions or E&O insurance. According to The Hartford, professional liability insurance offers you protection against claims due to mistakes you make in rendering your services.
If an insurance dispute arises, a claimant may immediately threaten to take your company to court to force you into a settlement. Not only can this be costly and time-consuming, it is also likely to lead to bad publicity. At Fowler Bell PLLC, our legal team often counsels insurance carriers on the benefits of an arbitration clause.