If you’ve been involved in a dispute with your insurance company, it may be necessary for you to take legal action. Understanding how to sue an insurance company can sometimes be difficult, especially if you’ve never had any such disputes before. 

To begin with, the most important thing for you to do is to obtain a statement in writing from the company regarding the subject of dispute. For example, if they’re refusing to pay out on your personal injury policy, you need to obtain a written letter from the insurance company stating their reasons for the denial. To be sure, you should request as many written statements from the company as they can provide. 

In addition, you should compile any documents and copies that you have that might be connected with the dispute. This can include contracts that you signed, past statements from the company, and a written account of events leading up to the dispute. These can all be used as evidence when suing an insurance company.

What Common Legal Issues Occur With Insurance Companies?

A lawsuit against an insurance company can be based on many different factors and issues. You may have a claim against your company for issues like:

  • Company refusal to pay on a policy
  • Questionable or unethical practices by the company, resulting in your losses
  • Breach of contract (this can involve a number of different contract terms)
  • Bad faith- this is where the company engages in misrepresentation or fraud to get you to sign a document

A newer issue that is arising with insurance companies is the practice called “robo-signing”. This is where the company engages in mass signing of insurance documents, without reviewing the application for accuracy or eligibility requirements. The company may “robotically” sign or approve policies without the applicant truly being eligible. This can result in losses for the insured in the long run. 

This practice was originally connected with mortgages and foreclosure documents, but it’s also happening in title insurance and other types of insurance claims. If you suspect that your insurance company has engaged in robo-signing, you may wish to contact a lawyer immediately to help you file a claim.

What Are Some Remedies Available in an Insurance Claim Lawsuit?

If you are able to succeed in a lawsuit against an insurance company, the court may issue you a monetary damages award. This usually requires the insurance company to reimburse you for losses caused by their violation. Or, the court may require the company to adjust their policies or take similar action. This depends on the nature of the claim you have filed. 

Note that a court may require you to file a claim internally with the insurance company’s human resources or dispute resolution department. The court may not issue a damages award if you didn’t first “exhaust your resources” through an appeal or similar process.  Thus, you may wish to consult with a lawyer for advice on when you are eligible to file a lawsuit. 

Do I Need a Lawyer?

Figuring out how to sue an insurance company on your own can be time-consuming and also confusing. It’s in your best interest to hire a personal injury lawyer for advice with how to deal with an insurance company. Your attorney can provide you with legal guidance at every step, from appealing with the company to filing an actual lawsuit in court. An experienced lawyer can represent you in court so that you obtain an appropriate remedy for your situation.