Insurance companies provide an essential service to homeowners, drivers, and U.S. residents. Ideally, insurance companies are able to thrive, and their clients are protected and satisfied. There is always the possibility of miscommunication or disagreement, however, and if a client files a bad faith claim, insurance companies risk losing time, money, and business. A Louisiana bad faith defense lawyer can handle bad faith cases with competency and tact.
Degan, Blanchard & Nash’s litigation counsel represent insurance companies faced with lawsuits brought by individuals and business in a number of jurisdictions in both the first-party and third-party contexts. First-party claims concern the handling of a claim made directly against an insurer by its insured. On the other hand, third-party claims arise out of an insurer’s handling of a claim made by a third-party against the insured.
First-party claims, for example, include claims made directly against one’s homeowner’s insurer for property damage, uninsured/underinsured motorist carrier, and medical payments carrier. There is a direct relationship between the party filing the claim and the insurance company. This also means the insurance carrier is responsible for acting in good faith and has a duty to their client. Plaintiffs are often more likely to win a bad faith case when it is a first-party claim.
Third-party claims typically arise in cases involving third-party claims of property damage and bodily injury. A third-party claim might look like an individual who has been in a car accident holding the other driver’s insurance company to account, such as if they believe the other driver was at fault for the accident. While insurance companies always have a responsibility to act in good faith, the duty is primarily to their own client.
Per 2022 reports, bad faith claims have been on the rise in the U.S. overall, with different states changing or interpreting laws in ways that necessitate insurance companies being particularly vigilant. Since laws and their applications shift over time, it is helpful to have legal guidance specific to the applicable geographic region. Being ignorant of the laws that apply to insurance companies is risky and can lead to costly litigation.
With offices in multiple cities, our team of lawyers has experience at all levels of the Louisiana court system, including, but not limited to:
With locations in Lafayette, New Orleans, and Baton Rouge, our team has built relationships with judges and courts across the state. Our lawyers stay abreast of new laws or new interpretations of laws.
Working with legal professionals from the outset can help companies verify that their insurance policies are well-constructed and do not leave room for unnecessary and undesirable litigation. Taking action to find legal support can save money and time overall.
Notably, in most jurisdictions, once a claim is no longer in dispute or a settlement has been reached, an insurer has a limited time to tender payment. However, disputes frequently arise about whether a claim is reasonably in dispute. Typically, where there is a substantial, reasonable, and legitimate dispute as to the extent or amount of an alleged loss, an insurer may avoid the imposition of penalties. Where such an issue exists, capricious or without probable cause, it should not result in penalties being levied against the insurer.
An insurer must pay any undisputed amount over which reasonable minds could not differ, however. Because bad faith claims arise after the issuance of a policy, they cannot be accounted for when an insurer is setting premiums based on the risk being insured. As a result, bad faith claims can be costly to an insurer.
The attorneys of Degan, Blanchard & Nash are sensitive to the perceived imbalance of power between insurers and insureds, and they approach bad faith cases from a broad perspective involving coverage analysis, regulatory compliance, and litigation. Our attorneys collectively have decades of experience in researching and drafting bad faith and insurance coverage opinions, litigating extra-contractual disputes, and representing insurers in regulatory compliance matters.
Our attorneys also have experience in drafting and amending policy language for insurers to avoid further bad faith exposures. Even companies that are not in the midst of a bad faith claim can benefit from working with our team. It is essential to write policies in language that provides enough clarity that a claimant will not misinterpret the policy or allege that an insurance company is doing so.
Our attorneys successfully resolve bad faith issues and represent insurance companies in a dedicated and creative manner, while providing the personalized and flexible service of a small firm. Whatever the dispute entails, our bad faith lawyers work diligently to achieve the best possible solution for our clients.
Whether you are an insurance company trying to preemptively prevent bad faith claims or are currently in the middle of such a claim, our team of dedicated lawyers can provide the guidance you need. Protect your business by working with legal professionals who know how to navigate bad faith claims with confidence. Reach out to Degan, Blanchard & Nash today.