When you purchase homeowner’s, automobile or other liability insurance, you expect your insurance company to pay any third-party claims against you, and to represent you in court should you be sued. In fact, your insurance contract most likely obligates your insurance company to do just that. The insurer’s obligation to pay benefits for valid third-party claims is known as its “duty to indemnify.” The insurer’s obligation to defend you in court, even if a claim may not be valid, is known as its “duty to defend.” These duties arise in situations in which a third party is injured and that party’s claim falls within the scope of your insurance policy. Examples include motor vehicle accidents in which you are one of the parties at fault, and situations such as someone falling or otherwise being injured in your home. Also falling within the duty to defend is the insurer’s obligation to accept a reasonable settlement offer. When an insurance company refuses to do this and a case proceeds to trial, the policyholder could be left personally liable for damages beyond his or her policy limits. This can cause financial ruin.

Unfortunately, some insurers do not live up to their promise to protect you. When an insurance company wrongfully fails to defend or indemnify a policyholder (the insured), this is known as bad faith. In instances of bad faith, an insured may be entitled to several types of damages. These include compensation for financial and other losses, interest, attorney fees, court costs and in some cases, punitive damages. Because bad faith can be difficult to prove and insurance companies have attorneys working hard to minimize their payouts, you need an experienced trial lawyer who will work just as hard to protect your interests. Our dedicated insurance attorneys can help you secure all of the compensation to which you may be entitled for your insurer’s bad faith failure to defend or indemnify you. Your insurance company is obligated to honor your insurance contract; when the insurer fails to do that, we can help.

At Feldman Shepherd, we are committed to helping our clients throughout Pennsylvania and New Jersey obtain the best possible recovery as expeditiously as possible. We are here to serve you with hard work, attention to detail and a caring approach tailored to your individual needs. If we may be of assistance to you, please do not hesitate to contact us today.