If you meet specific requirements, you can sue your insurance company for its wrongdoing. One thing to note is that an insurance policy is a contract. The insurance company promises to indemnify the insured should an accident occur, while the insured pays a monthly premium.

Under South Carolina law, implied in every contract is a covenant of good faith and fair dealing. If the insurance company violates the agreement, the violation can be considered bad faith, opening the insurer to a lawsuit for insurance bad faith.

What is Insurance Bad Faith?

Insurance bad faith is the insurer's refusal or failure to pay compensation for a legitimate insurance claim made by the insured. Insurance companies can commit several types of bad faith, including:

• Refusing to pay out a claim covered under a policy
• Delaying to make an insurance claim settlement
• Paying out only a part of the claim
• Failing to investigate an insurance claim

South Carolina laws allow you to recover damages from the insurance company. You only need to prove that your insurer failed to act reasonably or didn't have a factual judgment to support the decision to dismiss paying you the benefits under the policy.

Some of the acts that can constitute inappropriate claims practices include:

• Failing to acknowledge communication to insurance claims
• Intentionally misrepresenting pertinent policy provisions or facts related to the policy
• Compelling the insured to file a lawsuit by making awkward pre-suit settlement offers
• Unreasonably denying or undervaluing claims;
• Failing to establish reasonable standards for settlement or investigation

How to File an Insurance Bad Faith Lawsuit

To file an insurance bad faith lawsuit in South Carolina, you should demonstrate that you acted in good faith to seek compensation for a valid claim. You also need to review your policy, keep copies of documents relating to the claim, and put your insurer on notice before filing the lawsuit.

A bad-faith insurance lawsuit requires a lot of preparation and paperwork. For this reason, it is advisable to seek the services of a Spartanburg insurance lawyer during the early stages of the insurance claims process.

It is essential to note that South Carolina laws do not allow you to sue another person's insurance company for bad faith. However, there is a way to work around that. You only need to get a verdict against the insured or the at-fault party. The at-fault party can then assign you their rights against their insurer in exchange for not confiscating their assets.

Get Help from a Spartanburg Insurance Bad Faith Lawyer

Litigation can be an excellent way to set things right if your insurance company has undermined your rights to recover compensation. A Spartanburg insurance lawyer can help you understand your rights and offer legal support. 

At the Law Office of Tyler Rody, we are ready to help ensure you receive just compensation. Contact us today to request a free consultation with Tyler Rody. Tyler Rody, insurance bad faith lawyer.