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Insurance Bad Faith Claims

As of April 1, 2022, we only take Insurance company non-payment cases for high dollar policy amounts. Our initial retainer fee for such cases can be in the range of $15,000 and potential clients must make the economic decision whether it makes sense to retain our Firm.

When an insurance company refuses to pay on a policy, this can likewise be financially devastating to a consumer. As consumers are aware, insurance is needed to cover life, automobile, home, business to name a few types. The denial of this money can put a person or business’ life on hold or worse.

Our New York City insurance bad faith cases involve litigation against insurance companies for failure or refusal to pay on a policy claim. Perhaps the most egregious example of such a denial is in the context of life insurance. A life insurance policy provides often critical financial support for the survivor(s) of the deceased. The absence of such funds for the survivor contemplated by the deceased while he was living can be devastating to the survivor.

When a policyholder pays his/her monthly premiums to the insurance company, he/she reasonably believes that the company will pay the death benefit to the beneficiary. The situation which leads to the need for litigation is when the insurance company reads or interprets its own policy in an incomplete or unfair way to justify its denial of a benefit payment(s). Litigating on a breach of contract case against an insurance company entails an understanding of the underwriting and claims handling procedures. Such cases often depend on the use of an expert witness, preferably a former underwriter at another company, to adequately explain to a judge or jury what a company did wrong in failing to pay.

Insurance companies are in business to make profit and the failure or refusal to pay on a claim saves them money. Short of litigation however, there may be an internal claims or appeal process a beneficiary can take advantage of to get money from an insurance company. In addition, consumers may also file a Complaint with the New York State Department of Financial Services. These complaints will force a company to file a written response and can gain valuable information against the company even before a lawsuit. Our New York City insurance bad faith attorneys are familiar with how this process works.

Two popular reasons for a denial of a claim is that material misrepresentation was made at the time the policyholder executed the application or that the occurrence claimed of is not within the scope of the insurance policy. As such, the litigation rises and falls from the discovery process over evidence of misrepresentation and/or the language or interpretation of the policy itself. Rarely will the insurance company witness admit there was no such misrepresentation or that the act was a covered event by the policy. It is typically for the litigation to draw out these facts and convince a judge.

The term “bad-faith” arises in this context when the company’s adjuster among other things, denies a claim for an illegitimate reason; requires the beneficiary to undergo an unreasonable process in providing information for the claim; does not conduct a requisite investigation of the claim; fails to timely process the claim. As in any breach of contract claim, the beneficiary is entitled to bring the case in New York within a six (6) year Statute of Limitations period. Beyond that time, the case will likely be dismissed absent some extraordinary showing. An insurance bad faith lawyer in New York City can help the plaintiff sue for actual, consequential and incidental damages stemming from the company’s denial.

Proof of bad-faith in an egregious circumstance might also lead to a claim for punitive damages. These are additional damages, usually as a function of actual damages that a beneficiary can claim for the insurance company’s intentional conduct. An award of such damages by a judge are meant to punish the company and discourage it from denying beneficiaries in that way in the future.

We have found that in the current consumer financial environment, judges are not sympathetic to insurance companies who fail to pay claims. Policy premiums have gone straight up over the years, and the judiciary by and large realize that non-payment on an insurance policy can be economically devastating to a beneficiary on the policy. As such, given an appropriate coverage amount, we are eager to take on consumer claims against bad-faith insurance carriers.

The Linden Law Group, P.C. file insurance bad-faith claims New York City’s five boroughs, including New York, Brooklyn, Queens, Kings, Bronx, Staten Island (Richmond ) counties, Long Island’s Nassau & Suffolk Counties, Westchester, Orange, Rockland and certain up-state New York counties.

Client Reviews
I highly recommend this law firm. Attorneys Unger and Benjamin battled a real estate scammer who defrauded me out of substantial money. They were able to get a good result for me after the defendants put up numerous obstacles and delays over 18 months. And they were honest with me regarding their upfront and contingency fees. Definitely hire this firm if you are a victim of fraud or breach of contract. Rebekah W.
Over the years I have had dealings with many of attorneys and I can honestly say that Mr. Benjamin is the best lawyer I have ever worked with. He's conscientious, and takes care of your case as if his own interests were at stake. He's professional, always answered my calls and takes the time to discuss the best course to take. Everything was done timely and efficiently. I couldn't be happier with the result. I wish they were all like him. The best decision I made was to use him for all my legal needs. Nancy O.
Attorney Benjamin is an excellent attorney. He battled a finance company for me for nine years, defeating multiple motions that were thrown at him over the years. He is an honest, compassionate and trustworthy attorney, and was an aggressive advocate for me for a long time. After so many years, he finally got a great result in August, 2015 after defeating still another motion by the lender. I highly recommend Attorney Benjamin. Daniel O.
We hired this Firm on July 20, 2018 to sue a company for fraud. While the case took longer than we wanted, the lawyers battled for 1 year with this nationwide real estate company to expose the scam they inflicted on us. In order to get to settlement, our lawyer Jeffrey Benjamin cut the Firm's fee in order that we could put more money in our pocket and settle. The lawyers here are honest and bent over backwards to make us happy and settle, and not drag out the case for years. We are so happy we went with this Firm. Thank you. K.J.