Columbia policyholders confronting wrongful denials deserve straightforward answers about bad faith elements, insurer liability standards, available damages, and litigation strategies holding insurance companies accountable.
What is insurance bad faith under South Carolina law?
Bad faith occurs when insurers unreasonably deny, delay, or underpay valid claims without proper investigation or justification. Insurers owe duties of good faith and fair dealing to policyholders—violations create legal liability for breach of contract and tort claims. South Carolina recognizes both first-party bad faith (claims by policyholders against their own insurers) and third-party bad faith (claims involving liability coverage). Proving bad faith requires showing the insurer lacked a reasonable basis for denial and knew or recklessly disregarded that lack of basis. Matt McGuire analyzes claim files, denial letters, and investigation records to prove insurers violated duties owed under South Carolina insurance law.
How do I prove my insurer acted in bad faith?
Proving bad faith requires showing the insurer lacked reasonable basis for denial and knew or recklessly disregarded that unreasonableness. Evidence includes complete claim files documenting inadequate investigation, denial letters revealing improper reasoning, policy documents showing coverage the insurer claims doesn't exist, and expert testimony establishing industry standards. We obtain internal insurance company documents through litigation discovery—adjuster manuals, training materials, and corporate communications exposing systematic bad faith practices. Pattern evidence showing the insurer denies similar claims systematically strengthens bad faith cases. Matt McGuire subpoenas records insurers never intended policyholders to see, revealing the true reasons behind wrongful denials that create bad faith liability under South Carolina law.
What damages can I recover in bad faith case?
Bad faith damages include full policy benefits wrongfully denied, consequential damages caused by the insurer's wrongful conduct, emotional distress from financial hardship and claim-fighting stress, attorney's fees incurred obtaining benefits that should have been paid, interest on delayed payments, and punitive damages when insurer conduct demonstrates willful or reckless disregard for policyholder rights. Consequential damages compensate all harm flowing from wrongful denial—medical expenses incurred because the insurer refused to authorize treatment, lost income when disability or health claim denials prevented recovery, and emotional distress from the insurer's misconduct. Punitive damages punish egregious bad faith and deter future misconduct, forcing insurers to change systematic practices. Unlike policy benefits capped by coverage limits, bad faith damages can exceed policy limits substantially.
Can I sue if insurer just offered too little money?
Yes, when settlement offers bear no reasonable relationship to claim value demonstrated by evidence. Lowball offers showing unreasonable valuation constitute bad faith when insurers ignore legitimate evidence supporting higher values. We prove bad faith through expert testimony establishing your claim's actual value, comparing that value to the insurer's offer, and demonstrating the insurer's valuation lacked reasonable basis. Insurers using biased medical examiners who dispute treating physicians' opinions, ignoring industry valuation standards, or applying arbitrary claim caps create bad faith liability. Even if the insurer eventually pays more after you hire an attorney, you can still recover consequential damages and punitive damages for the initial unreasonable offer that forced you to litigate to obtain benefits owed under your policy.
What if my claim is still pending investigation?
Insurers must investigate promptly and reasonably under South Carolina law. Delays requesting endless documentation, transferring claims between adjusters so no one takes responsibility, or failing to respond within reasonable time create bad faith liability even if benefits eventually paid. We challenge investigation delays through bad faith litigation forcing insurers to process claims properly. If the insurer has possessed all necessary information for weeks or months but still hasn't decided, that delay likely violates duties owed. We analyze claim files to determine whether the insurer conducted adequate investigation or simply delayed hoping you'd surrender. Even if the insurer ultimately pays benefits, consequential damages from delay remain recoverable—medical bills incurred during delay, lost income while waiting for disability benefits, and emotional distress from the insurer's misconduct.
Are punitive damages available in bad faith cases?
Yes, punitive damages are available when insurer conduct shows willful or reckless disregard for policyholder rights under South Carolina law. Punitive damages punish egregious misconduct and deter future bad faith, requiring insurers to change systematic practices denying legitimate claims. Evidence supporting punitive damages includes pattern evidence showing the insurer systematically denies similar claims, internal documents revealing corporate policies prioritizing profits over policyholders, and conduct demonstrating conscious indifference to policyholder rights. Punitive damages awards can substantially exceed compensatory damages when insurer misconduct warrants punishment. Juries award punitive damages when insurers demonstrate the type of egregious conduct that requires deterrence—systematic claim denials, refusing to investigate properly despite knowing investigation inadequate, or maintaining corporate policies designed to wrongfully deny claims knowing some policyholders won't fight back.
What is statute of limitations for bad faith claims?
South Carolina statute of limitations for bad faith claims varies based on claim type and whether you're pursuing breach of contract or tort claims. Generally, breach of contract claims must be filed within three years, while tort claims have different timeframes. The limitations period typically begins running when you knew or should have known of the bad faith conduct—often the denial date, but sometimes later if the insurer concealed misconduct. Some insurance policies contain contractual limitations periods shorter than statutory periods, creating potential traps for unwary policyholders. Early legal consultation protects rights and prevents missing critical deadlines that could bar recovery entirely. Matt McGuire analyzes your situation to determine applicable deadlines and ensures timely filing preserving all available claims under South Carolina law.
Can I sue if insurer delayed but eventually paid?
Yes, bad faith claims include unreasonable delays even when benefits ultimately paid. Consequential damages from delay—medical bills incurred while waiting, lost income during disability claim delays, emotional distress from the insurer's misconduct—remain recoverable despite eventual payment. We prove the delay lacked reasonable justification by showing the insurer possessed all necessary information but failed to decide, requested unnecessary documentation hoping you'd give up, or transferred claims between adjusters avoiding responsibility. Industry standards establish reasonable investigation and decision timeframes—insurers violating those standards create bad faith liability. Even if benefits eventually paid in full, you can recover damages caused by delay plus punitive damages when delay demonstrates willful or reckless disregard for policyholder rights requiring deterrence.
Do I need attorney to fight insurance bad faith?
Yes, insurance companies employ lawyers and adjusters whose sole job is minimizing payments to policyholders. Experienced bad faith counsel levels the playing field exposing misconduct insurers hope policyholders won't challenge. We understand policy interpretation, claims handling standards, discovery procedures obtaining internal documents, and trial strategies proving bad faith to juries. Insurers count on policyholders accepting wrongful denials rather than hiring attorneys who know how to fight back effectively. Bad faith litigation requires expertise obtaining claim files through discovery, retaining credible experts, and proving insurer conduct violated duties owed under South Carolina law. Matt McGuire has fought insurance companies for over 30 years, forcing insurers to honor promises made to premium-paying policyholders and recovering damages beyond policy limits when bad faith proven.
