Insurance Coverage and Bad Faith Disputes Attorney in Bozeman, Montana
At AFJ Law Firm PLLC, we understand that insurance is an important part of our lives. We expect our insurance companies to be there when we need them after a car accident, house fire, storm or serious injury – but sometimes they don’t keep their promises.
Insurance companies are powerful corporations focused on profits, and they can delay, underpay or deny claims from policyholders like you. But if you believe your claim was handled unfairly, don’t be alone – you have rights. Our team at AFJ will help you enforce them and get the compensation you deserve.
Understanding Insurance Coverage Disputes
An insurance policy is a legal contract that can be complex. A coverage dispute occurs when your insurance company disagrees with its obligation to pay for a claim you have made. They may claim that the specific event is not covered by the terms of your policy, that you did not meet a technical requirement, or that the amount of loss is less than you believe it should be.
These disputes are not just about paperwork. They are about your financial security and your ability to recover and rebuild. Some common types of insurance policies that can lead to coverage disputes include:
- Homeowners Insurance: Disputes over damages from floods, fires, hail, wind, burst pipes, or foundation issues.
- Business Interruption & Commercial Property Insurance: Denials for losses that disrupt your business operations, often involving complex arguments about the cause and duration of the disruption.
- Automobile Insurance: Conflicts involving liability, underinsured motorist (UIM) claims and uninsured motorist (UM) claims, vehicle valuation after total loss, and rental car coverage.
- General Liability Insurance: For businesses facing claims for bodily injury or property damage.
- Professional Liability and Errors & Omission Insurance: Denials of claims related to alleged professional mistakes.
- Life, Health, and Disability Insurance: Disputes over policy definitions, pre-existing conditions, or the cause of death or disability.
What Is Insurance Bad Faith?
When a dispute crosses the line into unlawful territory, it can become an “insurance bad faith” case. Insurance companies in Montana have a legal obligation to act in good faith and treat their policyholders fairly. This is not a suggestion, but a requirement under Montana law.
Bad faith occurs when an insurance company acts without a reasonable basis for its actions and/or with knowledge of or disregard for lack of a reasonable basis. In other words, it is when a company prioritizes profit over its contractual and ethical obligations to its customers.
Signs You May Be a Victim of Bad Faith
How can you tell if you’re dealing with a simple delay or an instance of bad faith? Look out for these warning signs:
- Unreasonable Delay: The insurer delays the process for weeks or months without providing a valid reason. They fail to conduct a timely investigation.
- Underestimating Your Claim: They offer a low settlement amount that does not accurately reflect the true value of your loss. There is often no explanation for this.
- Rejecting Your Claim Before Investigation: Your claim is rejected before the company has fully investigated the facts.
- Requesting Irrelevant Documentation: They bury you in endless, repetitive, or unnecessary paperwork requests, frustrating you into giving up or accepting less.
- Misrepresenting Policy Language: The adjuster incorrectly explains or twists the policy’s terms to justify a denial or low payment.
- Failure to Communicate: Your calls and emails go unanswered, leaving you in the dark about the status of your claim.
- Refusal to Defend: If you are a business or individual with liability coverage, the insurer refuses to provide legal defense against a lawsuit that should be covered by your policy.
Legal Protections for Policyholders in Montana
Montana law provides strong protection for consumers through the Montana Unfair Trade Practices Act (MUTPA), which prevents insurers from making deceptive, unfair, or unreasonable claims. If your insurance company violates this law, you are not limited to recovering only the original claim amount.
You may also be entitled to additional damages, such as lost wages, business income, credit damage caused by delay, and compensation for emotional distress caused by stress and uncertainty during the dispute with your insurer. In extreme cases, courts may even award punitive damages to punish the insurer and deter future misconduct.
Why Choose AFJ Law Firm? How We Can Help
Taking on an insurance company by yourself is like entering a courtroom without a lawyer. These companies have teams of adjusters, in-house lawyers, and outside law firms whose sole purpose is to minimize payments. You need an experienced legal professional who knows the laws, can read policies like a forensic investigator, and is not intimidated by corporate pressure.
At AFJ Law Firm PLLC, we have been handling insurance bad faith and coverage disputes since 2012. These are a core part of our practice, and we don’t just handle a little bit of everything. We specialize in helping our clients hold insurers accountable, and from the start, we thoroughly review their policies to identify every possible aspect of coverage.
We gather evidence and consult experts to build strong cases that leave little room for denial of coverage, and take charge of all communication with insurers, protecting our clients from their manipulative tactics. While we always strive for fair settlements through skilled negotiation, we prepare each case as if it were going to trial because this readiness often compels insurers to do the right thing.
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You Paid for Protection. It’s Time to Enforce It.
Your insurance policy is meant to be a safety net, not a cause of conflict or stress. If you have experienced a loss and are now in dispute with the company you trusted to provide protection, it may be time to take action.
Contact AFJ Law Firm PLLC today for a free and confidential consultation. Let us listen to your story, analyze your policy and the insurance company’s actions, and explain your legal rights and options. We believe that Montana residents are worth fighting for, and we will fight for you if an insurance company breaks their promises. Don’t let a bad faith denial be the final word.
Common Insurance Coverage Disputes FAQs
Bad faith occurs when your insurance company fails to fulfill its contractual duty to handle your claim fairly and in good faith. This includes unreasonable delays, denying a claim without a valid investigation, offering a settlement far below the true value, misinterpreting policy language to avoid payment, or failing to communicate. Montana law specifically prohibits these unfair trade practices.
A coverage dispute centers on a legitimate disagreement over whether a policy covers a loss (e.g., whether hail damage is excluded). A bad faith claim arises when the insurer’s handling of the claim is unreasonable or deceptive, regardless of the underlying coverage issue. You can potentially sue for bad faith even if the initial denial was correct, if the company’s process was unlawful.
Beyond the original amount owed under your policy, you may recover consequential damages like lost business income, credit damage, and compensation for emotional distress. In cases of especially egregious conduct, Montana courts can award punitive damages to punish the insurer and deter future misconduct.
Not necessarily, but it warrants investigation. Insurers often cite policy exclusions or technical failures (like missing a deadline) to deny claims. Bad faith may be present if they apply the exclusion incorrectly, knew the “pre-existing condition” was covered, or failed to properly notify you of the requirement you allegedly missed. A lawyer can analyze whether the denial has a reasonable basis.
Yes. Insurance policies are complex contracts, and insurers have legal teams working to limit payouts. An attorney who specializes in this area understands policy language, Montana insurance law, and the tactics adjusters use. They can interpret your policy, gather evidence to support your claim, and negotiate from a position of strength, often securing a better outcome.
These cases are highly technical and adversarial. A specialist firm has the precise expertise to dissect policy language, recognize bad faith patterns, and know the applicable laws and regulations. We have the experience and resources to conduct thorough investigations, consult necessary experts, and, crucially, the trial readiness needed to pressure insurers into offering a fair settlement.
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