If you choose to pursue an insurance bad faith lawsuit, you may recover several types of damages. Knowing what damages you can claim helps you understand your rights and what you might achieve.
Economic damages
In an insurance bad faith lawsuit, you can seek various types of damages. Compensatory damages cover the real losses you suffered because the insurance company acted in bad faith. These damages include out-of-pocket expenses. You can also recover lost benefits, which means compensation for any benefits you did not receive but were entitled to. Additionally, you can claim other financial losses.
Attorney’s fees and legal costs are another type of recovery you can seek. California law often allows you to recover these fees and other legal costs. This means you won’t have to bear the financial burden of hiring a lawyer and going to court on your own.
Non-economic damages
Emotional distress damages compensate you for the mental and emotional suffering caused. Punitive damages intend to punish the insurance company for especially bad behavior. Also, it prevents others from doing the same.
To get punitive damages, you need to show that the insurance company acted with malice, fraud, or a blatant disregard for your rights. Punitive damages are not meant to make up for your losses but to penalize the insurer.
Moving forward
You can recover several types of damages in an insurance bad faith lawsuit. Knowing these options helps you understand your potential recovery and take action if an insurance company fails to meet its obligations.