Best Bad Faith Insurance Lawyers in Wisconsin

About Bad Faith Insurance Law in Wisconsin, United States

Bad faith insurance refers to a situation where an insurance company fails to uphold its obligations to its policyholders. In Wisconsin, insurance companies are required by law to act in good faith and to handle claims promptly, fairly, and in accordance with the terms of the policy. If an insurer unreasonably delays payment, denies valid claims without cause, or otherwise acts unfairly, it may be liable for bad faith. Consumers who believe that their insurance company has not acted in good faith have legal remedies available under Wisconsin law.

Why You May Need a Lawyer

Legal assistance may be important anytime an insurer refuses to pay what you believe to be a valid claim, fails to investigate or process your claim in a timely manner, or offers a settlement that is far lower than what your policy covers. Other common scenarios include when insurers misrepresent policy language, unfairly interpret exclusions, or threaten policy cancellation as retaliation. Because insurance companies have significant resources and legal teams, navigating a bad faith claim on your own can be challenging. A knowledgeable attorney can help you understand your rights, build your case, negotiate with the insurer, and take legal action if necessary.

Local Laws Overview

Wisconsin law recognizes insurance bad faith as both a statutory and common law claim. The key statute governing unfair claims settlement practices is Wisconsin Statute section 628.46, which requires prompt payment on claims. Failure to do so without reasonable cause can lead to additional interest and damages. Apart from statutory remedies, the Wisconsin Supreme Court has held that insurers have an implied duty of good faith and fair dealing in every insurance contract. Violating this duty can lead to lawsuits for compensatory and punitive damages. However, policyholders must be able to show not only that the claim was denied, but that the insurer acted unreasonably and with knowledge or reckless disregard for the lack of a reasonable basis.

Frequently Asked Questions

What is considered insurance bad faith in Wisconsin?

Insurance bad faith occurs when an insurer unreasonably withholds benefits due under a policy or fails to deal fairly with a policyholder. This can include delaying payments, denying valid claims, or undervaluing settlements without a reasonable basis.

Can I sue my insurance company for bad faith?

Yes, in Wisconsin, you can file a lawsuit against your insurance company for acting in bad faith. If successful, you may recover not only the benefits under your policy but also additional damages, including punitive damages in cases of egregious misconduct.

What do I need to prove in a bad faith claim?

You must show that the insurer denied or delayed your claim without a reasonable basis and knew or should have known it was acting unreasonably. Merely disagreeing with the insurer's decision is not enough.

What types of damages can I recover in a bad faith insurance case?

Potential damages in a bad faith claim include the amount due under the policy, emotional distress, financial loss due to the delay, interest, attorney fees, and sometimes punitive damages.

How long do I have to file a bad faith claim in Wisconsin?

The statute of limitations for bad faith claims can vary based on the specifics of your policy and claim. Generally, you have six years from when the bad faith conduct occurred, but it is important to consult with a lawyer promptly.

Can third parties bring bad faith claims against insurers?

In Wisconsin, bad faith claims are generally limited to the policyholder and not available to third parties except in very specific circumstances.

What is the process for filing a complaint with the Wisconsin Office of the Commissioner of Insurance?

You can file a complaint online, by mail, or by phone. This office investigates complaints related to unfair claims practices and may assist in resolving disputes, although it cannot award damages.

Do I need to exhaust all other remedies before suing for bad faith?

You typically need to file and fully pursue your initial insurance claim and any available internal appeals process before asserting a separate bad faith claim.

What are common examples of bad faith by insurance companies?

Examples include failing to conduct a proper investigation, delaying payment without justification, misrepresenting policy provisions, making unreasonable demands for documentation, and denying coverage without reasonable cause.

Will hiring a lawyer increase my chances of success?

A lawyer experienced in insurance bad faith claims can greatly increase your chances of success by gathering evidence, negotiating on your behalf, and guiding your case through complex legal procedures.

Additional Resources

- Wisconsin Office of the Commissioner of Insurance: Regulates insurance companies and handles consumer complaints - State Bar of Wisconsin Lawyer Referral and Information Service: Helps connect people with appropriate legal counsel - Wisconsin Department of Justice: Provides consumer protection resources, including for insurance disputes - Local legal aid organizations: Such as Legal Action of Wisconsin, which may provide assistance to qualifying individuals

Next Steps

If you believe your insurance company has acted in bad faith, start by gathering all relevant documents, including policy information, correspondence with your insurer, and notes about your claim experience. Consider contacting the Wisconsin Office of the Commissioner of Insurance to file a complaint or learn more about your rights. For legal advice and potential representation, consult with a Wisconsin attorney who specializes in insurance bad faith. Many offer free consultations to assess whether you have a viable claim. Taking swift action is important, as there are time limits on filing bad faith lawsuits. Be proactive and informed to protect your rights and pursue fair treatment from your insurer.