How To Sue an Insurance Company in New York

An individual in New York may need to sue the insurance company they use for many different reasons. Someone who pays insurance premiums, called the insured, has the ability to sue their insurance company, the insurer, typically based on a breach of contract.

This is because the insured pays their premiums in exchange for protection from liability, damages, or losses included in the policy. Because of this, a lawsuit will commonly occur if the insurance company does not fulfill their obligations under the contract, for example, by wrongfully denying an insurance claim or because of wrongful repudiation.

The first step for filing a complaint against a New York insurance company is to have a legal consultation to determine your rights under your contract. The insured should also get together all the documents and correspondence they have related to their insurance policy.

In most situations, the insured has to notify their insurance company by filing an insurance claim outlining the issue or covered incident that occurred. If the insured’s company wrongfully denies their claim or does not pay in a timely manner, it may be possible to file a lawsuit against the company.

Once an individual has decided to file a lawsuit against their New York insurance company, they should do the following:

• Request a full copy of their insurance policy, if they do not already have it
• Send the insurance company a letter asking for a written explanation of the denial of the claim that includes a demand for payout
• Give the insurance company a reasonable amount of time to respond to the payment demand
• Request an administrative hearing with the insurance company regarding the denial
  • This is a necessary step because, in many cases, an individual has to exhaust all available administrative remedies before they are permitted to file a civil lawsuit
• File a civil lawsuit against the New York insurance company for payment of the claim

If an individual does not have representation from an experienced attorney, it can be extremely difficult to succeed in a lawsuit against their insurance company. Pursuant to insurance law, an insurance company has to pay out properly filed insurance claims in a timely manner.

This is why it is important to notify the insurance company of the occurrence before a lawsuit can be filed. Federal laws also provide that insurance companies must adhere to an implied covenant of good faith and fair dealing with insured individuals.

If a New York insurance company breaches this duty of good faith and fair dealing or an insurance contract, the insured party may be able to recover the damages related to their claim in addition to punitive damages. To find out more about the legal options available in these situations, the individual should consult with a New York lawyer.

What Are Some Common Legal Issues That Happen With Insurance Companies?

As previously noted, one of the most common legal issues that arise with New York insurance companies is the wrongful denial of a valid claim under an insurance policy. It is important to keep in mind that there are certain instances in which a denial is valid under an insurance policy.

For example, for a New York car accident claim in a lawsuit against a car insurance company, the company may rightfully deny an insured’s claim if they were grossly negligent or responsible for the accident. In a case involving homeowner’s insurance, if the homeowner purposely damaged their own property in order to collect insurance money, the company can rightfully deny that claim.

Common examples of legal issues that can result in a lawsuit against a New York insurance company include:

• The insurance company failed to pay on time: When a New York insurance company does not make reasonable efforts to pay a properly filed claim, the insured individual can make a bad faith claim.
  • This same type of claim can also be made when the insurance company offers an unreasonably low settlement amount to settle the claim.
• Breach of contract: When a New York insurance company does not follow the terms of the insurance company, an insured can sue for breach of contract.
• The insurance company failed to represent: If a New York insurance policy provides that the company will represent the insured in a lawsuit against them and the company fails to do so, the insured can sue.
  • Additionally, if the insurance company accepts a settlement that is unreasonably low while representing the insured, a claim may also be filed.

How Long Does It Take To Sue an Insurance Company?

How long it takes to sue a New York insurance company will vary depending on numerous different factors that are unique to each situation. If an insurance lawsuit is resolved quickly, it can be handled in a year or, sometimes, even less.

These types of claims often take at least two years to fully resolve. If there are issues or delays, however, it can take longer.

Any time after a lawsuit is filed, the parties involved can reach a settlement agreement that ends the case.

How Much Does It Cost To Sue an Insurance Company?

How much it costs to sue a New York insurance company will be different for each situation, depending on the complexity and the lawyer. A lawyer may take this type of case on a contingency fee, meaning that the insured would not pay any attorney’s fees unless their lawyer wins the case.

It is important to remember, however, there are certain costs that an individual will have to pay related to the case no matter how their lawyer charges for their work, including:

• Court fees and filing fees
• Administrative fees
• Deposition costs
• Expert witness fees
• Investigation and information gathering costs

The specific details of the fee agreement an individual makes with their New York attorney should be put into writing.

What Are Some Remedies Available in an Insurance Claim Lawsuit?

There are different remedies that may be available in a New York insurance claim lawsuit. The most common type of remedy that is awarded in these types of cases is monetary damages.

These damages are often awarded in breach of contract claims. In these claims, the insured will be entitled to the actual damages that they were supposed to receive under their contract. In certain egregious cases, a jurisdiction may allow for the insured to recover out-of-pocket expenses, such as attorneys fees, and, in some cases, punitive damages.

There is another category of remedies, called equitable remedies, that do not involve monetary compensation. These remedies include specific performance, or requiring the insurer to fulfill their contract, contract reformation or rescission, or an injunction, which requires the company to engage in or stop engaging in certain conduct.

How Can I Improve My Chances of Winning a Lawsuit Against My Insurance Company?

An individual can take steps to improve their chances of winning a lawsuit against their New York insurance company, such as:

• Not admitting fault for anything
• Being cooperative through the process
• Knowing the rough value of the claim
• Getting everything in writing and keeping detailed records
  • For example, when suing health insurance company, it is important to keep records of medical visits and related expenses
• Hiring an attorney as early as possible

When communicating with the insurance company, an individual should always assume they are being recorded. Having legal representation is the most important step an individual can take to improve their chances of winning, as many insurance companies have a great deal of money and even lawyers on staff.

Do I Need a Lawyer To Sue an Insurance Company?

If you have to sue your New York insurance company, it is essential to consult with an insurance lawyer in New York. Your attorney will advise you of the possible remedies, protect your interests, and represent you in court.

You can find a New York insurance lawyer for free and in just minutes using LegalMatch.com. Simply submit your issue on the website and you will get responses from New York lawyers in your area ready to help you resolve your insurance issue.