Can You Sue Your Insurance Company for Breach of Contract?
Insurance is meant to provide peace of mind, but what happens when your insurance company fails to uphold their end of the bargain? If you live in Las Cruces, New Mexico, and believe your insurance company has breached your contract, you might be wondering, “Can you sue your insurance company for breach of contract?” The answer is yes, under certain circumstances. Understanding what constitutes a breach of contract, the legal recourse available, and the steps to take if you decide to pursue a lawsuit is essential.
What Constitutes a Breach of Contract?
A breach of contract occurs when one party fails to fulfill their obligations under a legally binding agreement. In the context of insurance, this can happen in several ways. Denial of a valid claim is one of the most common forms of breach. If your insurance company denies a claim that should be covered under your policy without a valid reason, it may constitute a breach of contract.
Delayed payment is another issue; insurance companies are required to process and pay valid claims within a reasonable time frame, and unreasonable delays can be a breach of their contractual obligations.
Additionally, underpayment of claims, where the insurance company pays less than what you are entitled to under the policy, and failure to defend, where liability insurance policies include a duty to defend you in lawsuits and the insurer fails to provide a defense, can also be considered breaches.
Steps to Take If You Suspect a Breach of Contract
If you believe your insurance company has breached your contract, consider the following steps.
First, carefully review your insurance policy to understand the coverage and the terms and conditions. Make sure that the claim you are making is indeed covered under your policy. Keeping detailed records of all communications with your insurance company, including emails, letters, and notes from phone calls, is crucial. Document any actions or inactions that you believe constitute a breach of contract.
Before suing, you might want to file a formal complaint with your insurance company. Sometimes, this can resolve the issue without needing to go to court. It is also advisable to consult with an experienced insurance attorney. They can provide you with legal advice tailored to your situation and help you understand your options. If your insurance company does not rectify the breach, you may need to sue for breach of contract. Your attorney can help you prepare and file the lawsuit.
Legal Recourse for Insurance Breach of Contract
When you sue your insurance company for breach of contract, you can seek various forms of relief. Compensatory damages are one form of relief, compensating you for the financial losses you suffered due to the breach, such as unpaid claims and any additional costs incurred.
Consequential damages may also be sought for losses that result from the insurer’s breach, such as additional financial losses due to their failure to pay a claim on time. In cases where the insurance company’s conduct was particularly egregious or in bad faith, punitive damages may be awarded to punish the insurer and deter similar conduct. You may also be able to recover the costs of hiring an attorney to pursue the breach of contract.
The Importance of Hiring an Insurance Breach of Contract Attorney
Navigating a breach of contract lawsuit against an insurance company can be complex and challenging. Hiring an experienced insurance breach of contract attorney is crucial for several reasons. An attorney can provide expert guidance on your rights and the legal options available to you. They can gather and present the necessary evidence to support your claim, negotiate with the insurance company on your behalf, and represent you in court if a satisfactory settlement cannot be reached. Having a knowledgeable attorney by your side increases your chances of successfully proving your case and securing the compensation you deserve.
Find a Las Cruces Insurance Breach of Contract Attorney
Being let down by your insurance company can be frustrating and stressful, especially when you rely on them for protection and support. If you believe your insurance company has breached your contract, it’s important to know that you have legal options available. By understanding what constitutes a breach of contract, taking the appropriate steps to document and report the issue, and consulting with an experienced insurance attorney, you can take action to hold your insurance company accountable and seek the compensation you deserve.
At the Law Offices of Kenneth G. Egan, we are dedicated to helping Las Cruces residents navigate the complexities of insurance disputes and achieve the justice they need. Contact us today for a consultation and let us help you with your breach of contract case.