Suing an Insurance Company - An Overview of the Process

Insurance companies need to be held accountable for following the rules and treating their customers fairly. If your claim was wrongfully denied, or your settlement was less than it should have been, you may be able to file a lawsuit against your insurance company.  Below are some frequently asked questions, and answers, about the process of suing an insurance company.

Q: How can I sue an insurance company?

A: Here is an overview of the process.

• You will need a lawyer, and the insurance company will certainly have their attorneys to represent them. You need a lawyer who has been successful at suing insurance companies, ask friends and family for referrals and check the lawyer’s references.

• The two lawyers will gather information about the claim and what happened. This process, called “discovery” involves both sides collecting information through interviews and depositions, which are done under oath by the lawyers and then information is shared with the opposing counsel.

• Both sides will have expenses to cover travel, collecting information, court costs, and expert witnesses.

• You will be deposed under oath. You will be interviewed and must provide the truth. Your lawyer is there to make sure the opposing attorney asks reasonable questions and can reject them by making objections.

• If the settlement process isn’t successful, then the claim may go to trial, and you will need to testify as a witness.

• The process of suing the insurance company in court will be long and may last years. The only option is to wait for the process to finish to find out what the outcome will be.

• Your lawyer will keep you updated, and it is a good idea to stay in contact with regular contact. Choosing an attorney you trust is important, so you know they have your best interests in mind.

•  The process is likely to include mediation and discussions about settlements where you will need to be involved.

• Your attorney will be advising you on the settlement process and any offers you receive from the insurance company.  You will need to make decisions once you have been advised.

Q: Lawyers are expensive.  How can I afford a lawyer?

A: Hiring an attorney based on a contingency fee means that you don’t have to pay upfront costs and will not have out of pocket costs. The attorney will receive a percentage of the settlement.  If you don’t get a settlement, you don’t have to pay the attorney.

Q: If I win the lawsuit against my insurance company, what will I get paid?

A: The amount varies on the details about your case, the type of policy you have, and where you live.  Here are some types of damages you may recover:

Your economic losses are paid in full.

• Damage to your property
• Medical bills
• Losing your home or car
• Loss of income
• Lost interest/loss of opportunity
• Recovery of your insurance benefits
• Payment for all losses from unpaid insurance benefits

Non-economic losses

• Pain and suffering due to your poor treatment by the insurance company

Exemplary/Punitive Damages/Penalties

• Additional fees or penalties to the insurance company for not paying on your claim.

Q: What happens if I lose the lawsuit?

A: If you hired an attorney based on a contingency fee, you would not have to pay anything to the attorney.  If you hired an attorney without a contingency fee arrangement, you may have to pay for court costs and other fees. Typically, the insurance company will pay for their attorneys and court costs.

Q: What usually happens in a suit against an insurance company?

A: Over 90% of all lawsuits are settled outside of court. It is very likely that your lawsuit will be settled through negotiations between the two attorneys or mediation proceedings.

Contact an Insurance Claims Attorney

If you are considering suing your insurance company over a wrongfully denied claim, you need an attorney.  Mynor E. Rodriguez is available to answer questions you may have about the process of suing your insurance company.  Contact him today.