Construction projects come with many risks. This is why policies exist to protect the liable party from financial devastation. The contractor’s insurance can cover everything from job site injuries to oversights in current building codes. One of the most significant benefits is that the insurance typically covers the project while it is in the works and several years later.
Insurance companies want to avoid hefty payouts. They prefer to keep their money drawing interest and working for them rather than paying for their promised services. If your insurance company has failed to communicate, delayed your construction insurance claim, or if they have denied valid claims altogether, they are acting in bad faith.
The legal team at Surrano Law Offices is ready to work. Our specialty is bad faith insurance law. The narrow scope of our practice means that we have the experience you need to fight the big insurance companies.
What Good Faith Insurance Process Looks Like
Insurance companies are expected to act in good faith. This means that they are honest and fair in their legal transactions with their client. The insurance company will outline the policy’s obligations and exclusions, conduct appropriate investigations when claims are filed, they will openly communicate with the insured, accept their claim, and offer compensation for the client’s losses promptly.
Signs of Bath Faith Construction Insurance
If an insurance company acts or omits anything outside the carrier’s obligation to the insuree, they act in bad faith. Some examples of this are:
- Denial of a valid construction insurance claim
- Delaying payments
- Requiring unreasonable evidence and information
- Prolonging the investigation portion of the claim
- Refusal to propose an appropriate settlement offer
- Concealing essential data
- Utilizing indistinct and imprecise policy language
- Intentionally misinterpreting the policy to avoid payment
- Canceling or threatening to cancel the client’s policy after a claim has been submitted
If your construction insurance company is complicating your ability to process a valid claim, a bad faith construction insurance lawyer can help. They understand your legal rights and are ready to fight for them.
Damages Available To You
There are three types of damages that the insured may seek. A construction insurance claims lawyer knows how to guide you through the process so that you may seek appropriate compensation. The damage types are as follows:
These are the most simple to calculate. Typically, the insurance company pays what their policy obligates them to pay. They can sometimes be compelled to pay interest incurred when failing to pay the debt appropriately.
These damages are a little less defined. Essentially, the extracontractual damages may comprise financial losses because of the insurance’s bad faith actions. They may include things like mental stress and emotional anguish. Drawn-out anxiety and distress caused by bad faith behavior can cause the involved party to become clinically depressed or to have anxiety disorders that may require treatment. These types of damages fall under the umbrella of extracontractual damages.
Punitive damages are not to replace or recover losses of the insured party. They are in place to punish the insurance company for acting in bad faith. It works as a deterrent for future bad faith actions. The insuree may be awarded punitive damages in an effort to teach the insurance company a lesson.
How Much Does a Construction Insurance Claims Attorney Cost
Construction insurance claims can be complicated and an unnecessarily lengthy process, and an attorney is almost always required to ensure that the insured party is fairly treated. It can seem expensive and daunting to hire an attorney.
We work on a contingency basis. Come in for a free consultation, and we will hear the details of your case and explain how the process works in more detail. Basically, we handle all of the upfront costs, and you only pay if we prevail and you are awarded damages. Contact us now. We are ready to help.