Insurance company harassment, bad faith denials, unfair treatment, and violation of consumer rights may all be grounds for an insurance claim lawsuit. Suing an insurance company for bad faith is possible in Wisconsin, but often, companies will do whatever it takes to try to protect their bottom line. When an insurance company puts its own profit above its duties to its customers, an insurance dispute lawyer can help hold them accountable.
Can You Sue an Insurance Company?
Under Wisconsin law, an insurance company can be sued for any of the following three reasons:
- Breach of contract
- Violation of consumer protection law
- Bad faith
Bad faith denials are understood as a separate and “unreasonable” wrong from a breach of contract due to the precedent set by Anderson v. Continental Insurance Co., 85 Wis. 2d 675, 271 N.W.2d 368 (1978). In Anderson, the plaintiff sued their insurance company after an explosion and furnace fire caused damage to their home. The insurance company refused to negotiate, and the plaintiff argued that the denial was both a breach of contract and an unreasonable denial in bad faith.
The Court in Anderson held that a bad faith claim is separate and distinct from the breach of contract, or simple breaking of the rules. It is a “separate intentional wrong which results from a breach of duty imposed as a consequence of the relationship established by contract.” While bad faith denials are understood to be intentional, the plaintiff does not have to prove actual manifested intent, only that the company acted unreasonably or dishonestly towards them by denying their claim.
How Can an Insurance Dispute Attorney Help Me Fight Bad Faith Insurance?
Bad faith cases are not as easy to prove as they might seem. Insurance companies will fight to deny payment and avoid being ordered to pay additional damages. Often, they will double down on their evasions, harassment, and other unethical techniques once they have been caught doing something wrong.
An insurance claim dispute lawyer can take on insurance companies by refusing to be cowed in negotiations, helping extract the right evidence to support your claim, and skillfully presenting it within the context of legal precedent. A bad-faith insurance lawyer will:
- Understand what actions constitute bad faith. Bad faith actions are typically not a simple one-off experience, but a pattern of disrespect for consumers and a willing ignorance of the law. A bad-faith insurance attorney can spot the issues that the average consumer might miss, such as an insurance company consistently hiring the same crooked investigator, or failing to investigate your claim at all.
- Gather all relevant documents and information. Our firm will structure your claim and connect you with outside experts when necessary to ensure that your evidence is as strong as possible when you present your claim.
- Adhere to all legal requirements. There are procedural formalities to filing that must be followed per Wisconsin law. Our firm will not only file accurately and on time but will adhere to all civil court requirements, including those that others might miss.
- Build a strong case with the help of facts, evidence, and supporting case laws and statutes. The Wisconsin Supreme Court outlines two distinct standards for proving a bad-faith insurance denial: 1) an absence of a reasonable basis for denying policy benefits, and 2) the insurer’s knowledge that it is acting recklessly in denying or underpaying the claim. The denial must be found to be unreasonable, and the company must have acted out of line by failing to provide a reasonable evaluation of your claim.
- Send a demand letter to the insurance company. Under Wis. Admin. Code Ins. §6.11(3)(a)(2) an insurance company must launch and conclude an investigation of your claim “with all reasonable dispatch”. The insurance company has 30 days to respond to your claim and pay, or else provide reasonable proof of why they are failing to do so under Wis. Stat. § 628.46.
- File your lawsuit in the appropriate Wisconsin court. Not every claim proceeds to trial, but if yours does, our office is ready and able to stand by your side in the courtroom and represent your best interests.
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Wisconsin Insurance Dispute Lawyer
How do you fight an insurance company and win? Take the first step by speaking to an insurance dispute lawyer about your bad-faith denial.
When Can You Sue an Insurance Company?
Suing insurance companies is not always possible in Wisconsin. State law outlines a strict statute of limitations as well as claims that are only admissible under the three tenets of bad faith, breach of contract, and violations of consumer protection laws. A company must act without a reasonable basis to deny or delay your claim to be sued for bad faith under Wisconsin law.
How Much Can You Sue an Insurance Company for Bad Faith?
Insurance claim estimates vary, and so do possible settlements from a bad-faith lawsuit. However, by Wisconsin law, a jury may award a plaintiff punitive damages in bad faith insurance cases as well as order a company to pay the amount owed to them by their policy. According to Kontowicz, 2006 WI 48, a claimant is also entitled to pre-judgment interest on their award when the plaintiff can prove, by way of a written notice of liability, that the insurer owes them money.
For example, say your insurance company denies your claim for $20,000 after a severe storm for damage done to your roof. However, they never sent an inspector out to your property, so they never provided a reason for why your claim was denied. In this case, your lawsuit may be worth more than the $20,000 you would attempt to prove you are reasonably owed.
Your attorney might be able to successfully win you not only this initial sum but also punitive damages for the company’s behavior, as well as interest on the prejudgement amount.
How Long Does It Take to Sue an Insurance Company?
Under Wisconsin state law, the default insurance claim statute of limitations is typically one year to file from the date of the loss – not the date of the denial. However, some policies may allow for up to two years to bring an insurance claim lawsuit.
This is a very short timeline and one that can be aggravated by an insurance company that uses unfair delays to avoid paying. By the time policyholders go to bring their claim for bad faith practices, it may be too late.
It is in your best interest to talk to an insurance dispute attorney as soon as you suspect your insurance company is acting unreasonably. Contacting us sooner rather than later can help preserve evidence, strengthen your case, and ensure you get to file within the appropriate timeline.
How Much Does It Cost to Sue an Insurance Company?
Wallace Law’s policy is that our services are “free unless we win.” You can pay for our work out of your insurance claim settlement once we have successfully represented your interests. We work to reduce the upfront burden on our Wisconsin neighbors after a fire, flood, or other disaster by ensuring that our services remain accessible for people facing bad-faith insurance denials.
How to Sue an Insurance Company: FAQs
The following are some frequently asked questions about how to sue your insurance company and bad faith denials in Wisconsin:
Can I Sue an Insurance Company in Small Claims Court?
Wisconsin Chapter 799 governs small claims court actions. An insurance company lawsuit may fall in small claims court in Wisconsin if it involves less than $10,000 overall or less than $5,000 in property damage.
What Happens When an Insurance Company Sues You?
An insurance dispute lawyer can also help if you are sued by an insurance company. We can investigate their claim, review the evidence against you, and take your side in negotiations as well as the courtroom.
Can I Sue an Insurance Company for Emotional Distress?
An insurance company’s bad faith tactics can take a toll on your physical, mental, and emotional health. An unreasonable denial after a sudden illness, loss of a loved one, or other devastating event can cost you more than just the amount that the company is holding over your head.
At Wallace Law, we may be able to help you recover additional damages for your pain and suffering in certain cases. Contact us for a review of your claim, and if you are able to recover compensation for your emotional distress after a bad faith denial.
Insurance Company Not Paying? Speak to an Experienced Bad Faith Insurance Dispute Lawyer
Wallace Law has years of experience fighting insurance companies so you don’t have to. Our insurance dispute attorneys stand up against insurance companies’ bad-faith denials every day. We know the tactics they use as well as the law.
A bad faith insurance claim denial does not have to be the end of the road, and you certainly do not have to fight it alone. Our attorneys have spent decades practicing insurance law, seeing the strategies companies use from both sides of the courtroom.
Let us go to work on your behalf today after a denied, delayed, or stalled claim. Contact us today for a free consultation.
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