When Does an Insurance Company Act in Bad Faith in Ohio?
An insurance company may legally refuse to pay you as long as it has a reasonable justification. But when an insurer takes an adverse action against you without a reasonable justification, it is acting in bad faith and may be subject to civil liability. Ohio law treats this as a breach of the implied covenant of good faith and fair dealing that exists in every insurance policy, and Ohio courts have recognized bad faith as a separate tort since the cases that set the standard, including Zoppo v. Homestead and Hoskins.
In Ohio, you can sue an insurance company for bad faith if you were treated unfairly while pursuing a first party insurance claim. A first party claim is when you recover on a policy that you hold, as opposed to a third party claim, when you recover on another person’s policy.
It doesn’t matter whether you are the holder of a home, renters, fire, or auto insurance policy: any time an insurance company denies compensation without reasonable justification, you may sue them for bad faith. There are many ways in which an insurance company may act in bad faith against a policyholder, including:
- Denying coverage without adequately investigating the claim
- Refusing to negotiate a settlement, or offering a very low settlement when the claim clearly demonstrates damages and liability
- Not paying settlements in a reasonable timeframe
- Twisting the wording of the insurance policy to avoid liability
- Not providing the policyholder with the reasons for the denial of the claim
- Threatening the claimant
- Not replying to the claim or transferring the case to a series of different claims adjusters
How to Win a Bad Faith Insurance Claim in Ohio
To win your case, you and your personal injury attorney will need to demonstrate by a preponderance of the evidence that the insurer acted against you without reasonable justification. Basically, this means proving that it is more likely than not that the insurance company acted in bad faith.
To meet this standard, you and your injury lawyer will need to provide records of all of your communications with the insurance company, and even request the insurance company to produce internal documents relating to how it processed your claim. Your lawyer must sift through this evidence and make an argument that the insurance company lacked a reasonable justification to deny your claim. Your lawyer will also need to show that your claim adhered to the requirements of the policy agreement and that you did not make any misrepresentations about the accident or your injuries.
Another important aspect of your bad faith claim will be the proof of your damages. In bad faith claims, you may be entitled to both compensatory damages, which will put you in the place you would have been had you not been wronged, and exemplary damages, which punish the insurer. Thus, you will need to document how the denial of your claim negatively affected your life, and present any evidence that shows that the insurance company deliberately acted against your interests.
Damages You Can Recover in an Ohio Bad Faith Claim
A successful bad faith claim can recover more than the original policy benefit. You may be entitled to compensatory damages, which put you back in the position you would have been in if the insurer had paid your claim properly, and in cases involving actual malice, punitive (exemplary) damages meant to punish the insurer.
Ohio limits punitive damages. Under Ohio Revised Code 2315.21(D), a punitive damages award generally cannot exceed two times the amount of compensatory damages awarded. The exact figures depend on the facts of your case, so it helps to discuss potential policy limits and your likely recovery with an experienced lawyer before you decide how to proceed.
3 Things Insurance Companies Don’t Want You to Know
- You Don’t Have to Accept Their Settlement Offer – You may think when an insurance company sends you a check to pay your accident claim, that’s the end of the process. But it doesn’t have to be. That check is an offer, and you aren’t required to accept. In fact, it’s always a good idea to consult an attorney before you cash the check. You might learn that the value of your injury claim is worth more than you thought, and more than the insurance company led you to believe.
- You Can Obtain Compensation Even if You Were Partly at Fault – In Ohio, you can still recover compensation for your injuries and losses caused by an accident even if your own negligence contributed to some of the fault. An insurance company may want you to believe that if you have any degree of fault, your claim should be denied. That’s not the law in Ohio. There’s an Ohio statute that says your contributory fault does not prevent you from receiving compensation. In a personal injury lawsuit, a jury will evaluate your percentage of fault when deciding whether you should receive compensation. As long as your contributory fault is not greater than the combined fault of everyone else involved, you can recover compensation. However, your compensation will be reduced by your percentage of fault.
- You Can Hire a Lawyer Immediately – You don’t have to wait until you’re thinking about a lawsuit to consult a lawyer about your car accident claim. A personal injury lawyer can be an invaluable ally from the outset. A lawyer can perform an independent investigation of your accident, gather the evidence to support your claim, and aggressively negotiate with the insurance company to obtain the best possible settlement for your case. If a settlement isn’t the best option, a lawyer can then take your case to court.
How Our Ohio Bad Faith Insurance Lawyers Help
At Kisling, Nestico & Redick we have built our reputation on getting fair compensation for our clients through careful investigation and zealous advocacy. Our Ohio car accident lawyers and insurance bad faith lawyers stand ready to take your case and fight for your rights. A KNR lawsuit is not just a legal action, it is the combined experience and determination of our entire legal team behind your interests.
Bad faith often overlaps with other coverage fights, so we also handle insurance dispute matters and uninsured and underinsured motorist claims. If you believe you have been denied your rightful compensation, if you are the victim of an insurance kickback scheme, or if your insurer has accused you of lying on your claim, talk to an Ohio insurance lawyer right away. Call Kisling, Nestico & Redick today at 1-800-HURT-NOW for a free and confidential consultation.
Frequently Asked Questions About Ohio Bad Faith Insurance Claims
What is bad faith insurance in Ohio?
Bad faith insurance is when an insurer treats you unfairly, such as denying, delaying, or underpaying a valid claim without a reasonable justification. In Ohio it is a separate legal claim from a simple breach of contract, and it applies to first party claims on a policy you hold.
How long do I have to file a bad faith insurance claim in Ohio?
Bad faith is treated as a separate tort in Ohio and generally carries a four-year statute of limitations, which is different from the two-year deadline for personal injury claims. Because deadlines depend on the facts, it is best to confirm yours with a lawyer as soon as you suspect bad faith.
Can I sue my insurance company for denying my claim?
Yes. If your insurer denied or delayed a valid first party claim without a reasonable basis, you may be able to sue for bad faith in addition to the original policy benefit. A lawyer can review how your claim was handled and tell you whether you have a case.
What damages can I recover in an Ohio bad faith insurance case?
You may recover compensatory damages tied to the harm the insurer caused, and in cases involving actual malice, punitive damages. Under Ohio Revised Code 2315.21(D), punitive damages generally cannot exceed two times your compensatory damages.
Do I have to pay anything upfront to hire a bad faith insurance lawyer?
No. KNR works on a contingency fee, which means you pay nothing upfront and no fee at all unless we recover compensation for you. Your first consultation is free and confidential.
