Insurance companies have an obligation to cover the losses of their policyholders if an accident or injury results in financial damages. The responsibilities of insurance companies and policyholders are outlined in an insurance policy, which is a contract specifying the coverage, limits of coverage, and terms of the parties’ agreement. The moment a policyholder begins making payments as per contract guidelines, both parties become legally obligated to uphold their contracted responsibilities. Unfortunately, insurance companies sometimes attempt to forego their responsibilities to avoid providing payouts.
If you believe that your insurance company has neglected the responsibilities of your contract, our insurance attorneys can help you pursue a fair settlement. Contact our Las Vegas law firm, Pursiano Barry Bruce Demetriades Simon LLP, today to request a free case consultation with an experienced insurance lawyer.
In broad terms, a breach of contract occurs when one party does not meet the contract’s requirements. Regarding an insurance policy, a breach of contract could occur if a policyholder fails to pay their premiums on time or the insurer refuses to cover the losses of a legitimate claim. Generally, an insurance contract may be breached in two ways: a material breach or an anticipatory breach. A material breach occurs when a contract is broken entirely and irreparably. An anticipatory breach or repudiation of a contract refers to a case wherein a party refuses to perform its obligations. For example, an insurance company selling an insurance package that it couldn’t conceivably cover is a material breach, while a company refusing to pay out on a legitimate claim is an anticipatory breach.
The following are a few of the most common ways that insurance companies attempt to breach the responsibilities of their contract.
Policyholders deserve payment for their claims, and insurance agencies that act in bad faith by breaching contracts must be held accountable. Fortunately, when an insurance company fails to follow the terms of a contract, policyholders have the right to file a lawsuit. Our skilled insurance litigation lawyers can help file their lawsuit, gather evidence of the insurance company’s misconduct, and pursue compensatory damages. Contact our Nevada law firm today to request a free, no-obligation case consultation!