What Damages Can You Receive for Bad Faith in NY?

When people get hurt, they will often first turn to their insurance provider in order to get the help that they need. That is, after all, what insurance is for. You pay them a little bit each month so that, in the event a serious injury or expense does come up, they can provide coverage and help you out. Unfortunately, insurance companies may not always be willing to do this, and sometimes, that can even rise to the level of straight-up denying your claim for no good reason. These are called bad faith insurance claims, and they are against the law. Injured plaintiffs will sue their insurance provider if they believe that they have acted in bad faith.

If a plaintiff successfully proves that their insurance provider wrongfully denied their claim, they are entitled to damages based on what they are owed under their insurance policy as well as damages for the after-effects of being denied coverage. Additionally, some circumstances may warrant punitive damages against the defendant insurance provider.

To have our New York insurance bad faith claim attorneys analyze your claim for free, contact The Carrion Law Firm by calling (718) 841-0083.

Explaining Bad Faith Insurance Claims in New York

Bad faith insurance claims happen when insurance companies attempt to unreasonably deny coverage in instances where they are obligated to do so. Of course, insurance providers do not provide coverage in every circumstance. Policies will have clearly detailed explanations of when coverage does and does not apply. When insurance companies try to read policies narrowly, don’t look into your claim with sufficient detail, and refuse to communicate with or even threaten you, they can be acting in bad faith.

There is no statutory cause of action specifically for “bad faith” under New York law. However, under I.S.C. Law § 2601, there are unfair practices that may lead to a lawsuit for what would generally be considered bad faith. It is also important to note that bad faith goes beyond simple differences of opinion between you and your insurance provider. For that reason, it is important to have our New York insurance bad faith claim attorneys examine your situation to determine whether filing a lawsuit makes sense.

What Can I Get Damages for Due to Bad Faith in New York?

The damages you can get because of a bad faith insurance claim are similar to those that you can get for other kinds of civil lawsuits. Damages are based on the actual harm done to you, with the idea being that the court can put the plaintiff back in a similar position to where they were before they got injured. In this case, the injury is anything that stems from being unreasonably denied insurance coverage.

Value of Coverage

In a successful bad faith insurance lawsuit, you will usually be able to get damages based on the coverage you were supposed to get from your insurance company. For example, if your policy provides $50,000 in coverage, the court can compel the insurance company to provide that coverage if they are not willing to do so themselves.

Punitive Damages

In some cases, you may be able to get what are called punitive damages. These damages are only awarded when defendants act especially badly. In New York, you have to show that the defendant acted either with “moral turpitude” or “willful or wanton negligence,” as established in Chauca v. Abraham and Ross v. Louise Wise Services, respectively.

You should go over your situation with our lawyers to determine what damages make sense in your case.

Consequential Damages

Most of the damages you will likely get in a bad-faith insurance lawsuit are not from the policy itself but from the effects of not getting that coverage. Not getting the insurance coverage you need at a crucial moment can have far-reaching negative economic impacts, so you can get damages to offset that economic loss.

For example, suppose you run a small business and, tragically, a fire burns it to the ground. Your insurance provider then denies coverage in bad faith. In that case, simply getting back what you were supposed to be paid in insurance will not offset the lost business, profits, and other things that you could have been doing had you received the coverage you needed on time. Therefore, you can get damages based on those economic losses in addition to the actual coverage you were supposed to get.

Evidence That Supports Damages in New York Bad Faith Insurance Claims

In order to be awarded damages in a civil action, you need to show that you actually suffered those damages through evidence. A lot of different things can be used to show that you suffered damages because of an insurance company’s bad faith actions, including:

Your Insurance Policy

Perhaps the most important piece of evidence in a bad-faith insurance claim lawsuit is your actual insurance policy. Our lawyers can look at this policy, find the relevant parts that compel your insurance company to provide coverage, and explain to the judge and jury exactly why the insurance company needs to provide coverage to you.

Communications with Your Insurance Company

Any interactions between you and your insurance provider can also help establish that they acted in bad faith. If you have phone calls, emails, and other correspondence between you and your insurance provider where they were hostile and obstructionist, we can show that to the court to demonstrate that your insurance provider acted in bad faith.

Bills and Other Expenses

If you can show the court your bills, invoices, and other expenses you had to pay out of pocket because your insurance provider unreasonably withholding coverage, that can be used to demonstrate consequential damages you are entitled to.

Contact Our New York Insurance Claims Attorneys and Discuss Your Case

Call (718) 841-0083 and talk to The Carrion Law Firm’s New York insurance bad faith claim attorneys about your case today.