Insurance Bad Faith

Why you shouldn’t settle with your insurance company

After an injury, the at-fault driver’s insurance company will likely offer you a settlement that seems attractive at the time. You may even think you have no choice but to accept it. You do have a choice.

Insurance companies typically make initial settlement offers for one reason: the terms are in the company’s best interest, not yours. It is critical not to make statements, sign documents, or agree to anything that could stand in the way of recovering fair compensation. It is in your best interest to interact with an insurance representative only when your lawyer is present.

Delay, deny, defend — how insurers protect their profits

Insurance companies exist to make a profit, and many will do whatever it takes to avoid paying more benefits than they have to. The old adage “delay, deny, defend” describes pretty clearly the priorities we see at work among our clients’ insurers.

To obtain the benefits you are entitled to, you need someone who understands how to get past — or break down — those walls of resistance. We work to recover the maximum compensation available for:

• Pain and suffering
• Lost wages
• Medical bills
• Out-of-pocket expenses

Unlike most personal injury firms, we employ staff who work directly with medical providers and insurers to monitor health care expenditures. It is surprising how often they find errors, such as multiple payers billed for the same service. Holding those parties accountable maximizes your final recovery.

M.G.L. c. 93A — the Massachusetts Consumer Protection Act

The Massachusetts Consumer Protection Act (M.G.L. c. 93A) enables victims of unfair and deceptive business practices to recover damages for their losses, attorney fees, and in some cases punitive damages.

To maximize profits, insurers may deny valid claims, delay payment, or offer compensation far below the amount of the loss. Chapter 93A provides a remedy when they do. In egregious cases, insurers may be subject to treble (triple) damages, which is why they vigorously contest bad faith claims.

We represent people in bad faith insurance cases involving:

• Car accident claims
• General liability claims
• Property damage claims
• Workers’ compensation claims
• Other types of bad faith insurance cases

M.G.L. c. 176D — how insurers are required to handle claims

M.G.L. c. 176D is the statute that controls how insurance companies must handle claims. Whether you have a premises or auto insurance claim, your insurer must conduct a timely and complete investigation. You do not have to file a lawsuit to get an investigation into your claim.

If your insurance company has violated 176D, that is an automatic violation of the consumer protection law, 93A, as well — which opens the door to significantly greater recovery.

We are prepared to take on insurers in 176D cases involving general liability, slip-and-fall accidents, car accidents, and injury claims.

M.G.L. c. 90 § 34M — your PIP benefits

In addition to any bodily injury claim, Massachusetts drivers and passengers are eligible for $8,000 in personal injury protection (PIP) benefits covering lost wages and medical bills, regardless of who was at fault.

These policies are complex, and victims often settle for far less than they are entitled to. After your accident, your insurance company will send you to their doctor and look for a reason to cut off your benefits. That is when we step in. Our staff coordinates with your insurer to restore the PIP benefits you are owed, and if the company refuses to negotiate, we file suit.

The collateral source rule

The collateral source rule is a principle of common law: if an injured person receives compensation from a source other than the at-fault party, the damages owed by that party should not be reduced by the amount of that compensation.

For example: John has a private disability policy. He is struck by a drunk driver and suffers paralyzing injuries. He is entitled to claim compensation from the drunk driver for medical costs, lost income, and pain and suffering — and he is also entitled to compensation from his disability policy. The rule says the driver’s liability is not reduced by what John’s own policy pays.

The Massachusetts exception: compensation owed by an at-fault party can be reduced by the amount the injured person receives from their PIP insurance. The rule and its exceptions are complex enough that insurance defense attorneys sometimes attempt to mislead jurors about how it applies. Strong representation matters.

No recovery, no fee

We handle insurance bad faith and injury claims on a contingency fee basis. You pay nothing unless we recover for you, and the initial consultation is always free. In addition to the compensation owed under your policy, a successful bad faith claim may also recover attorney fees and punitive damages.

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