Insurance claim denial and recovering damages from an insurer
When you have an individual disability insurance policy, you expect that it will pay out benefits in the event that you make a covered claim. However, there are times when these expectations are not met. There are times when an insurance company denies a claim, often without good reason.
If your claim is denied, there is always the chance it could have a negative impact on your finances. For example, if you are unable to work, as the result of an injury or illness, you may not have any money coming in. Subsequently, your financial situation will begin to suffer.
Recovering damages from an insurance company is easier said than done. However, it is not impossible.
For example, if your policy falls under ERISA, you may be entitled to receive past due benefits. For some, this is more than enough to put them back on the right financial track.
Conversely, if your coverage is not subject to ERISA, you may be able to file a lawsuit for “bad faith” damages, including but not limited to extra-contractual damages, distress damages and punitive damages.
A disability insurance claim denial is not something you want to think about. This means your insurance company is not willing to pay benefits, despite the fact that you believe you deserve the compensation.
If you have questions regarding a claim denial and how to recover damages, call our Chicago disability attorneys today. Visit our FAQ page for more information on denials, including the steps you can take to receive the compensation you deserve.