Insurance company interactions can be tense and annoying. Even though you timely pay your premiums, you might feel as though the insurance company is treating you poorly when it comes time to file a claim. If you have experienced severe emotional distress as a result of an insurance company’s actions or inaction, you may be wondering if you have legal recourse. What you should know about suing an insurance provider for damages related to emotional distress is provided here.
What is Emotional Distress?
Mental pain, anxiety, sadness, fear, shame, and other unpleasant feelings caused on by the actions of another person are all considered forms of emotional distress. The level of distress must be high in order to file a lawsuit for emotional distress damages. It’s possible that typical feelings of worry, tension, or grief following the denial of an insurance claim won’t escalate to the critical emotional distress needed to obtain damages. Intense mental anguish can also show up physically as headaches, nausea, insomnia, digestive problems, and other symptoms.
Negligent Infliction of Emotional Distress
One way you may be able to sue an insurance company for emotional distress damages is by bringing a claim for negligent infliction of emotional distress (NIED). The elements you must prove are:
- You owed the insurance company a duty of care.
- The insurance company breached this duty through negligent conduct
- You suffered severe emotional distress
- The insurance company’s negligence caused your distress
The key is showing the insurance company was negligent in how it handled your claim. Examples could include unreasonable delays, improper investigation, unfair claim denial, or other negligent actions. You must also show a physical manifestation of your emotional distress.
Intentional Infliction of Emotional Distress
It may also be possible to sue an insurance company for intentionally causing you emotional distress. The components of this statement are comparable:
- The insurance company’s conduct was intentional or reckless
- The conduct was extreme and outrageous
- The conduct caused you to suffer severe emotional distress
- You experienced physical manifestations of the distress
With this claim, you must prove the insurance company deliberately engaged in extreme and outrageous conduct with the intent of causing you emotional distress or that it acted recklessly in deliberate disregard of the high probability its conduct would cause such distress.
Bad Faith Insurance Claims
Another potential claim is insurer bad faith. Most states allow you to sue your insurance company if it breaches its duty of good faith and fair dealing. Examples of bad faith could include:
- Unreasonably delaying payment of your claim
- Unfairly denying your claim
- Failing to investigate your claim properly
- Misrepresenting policy terms
- Putting its own financial interests ahead of your claim
To prove bad faith, you must show the insurance company acted unreasonably and knew its actions were unreasonable or acted with reckless regard about the reasonableness of its conduct. Emotional distress damages may potentially be recovered for a bad faith claim.
State Laws Can Vary
Laws regarding emotional distress claims against insurance companies can vary by state. Some states may limit the types of emotional distress claims that can be brought against an insurer. The amount of damages you can recover may also differ between states, as can the statute of limitations for filing a claim. An experienced insurance litigation attorney can assess your case and options based on your state’s specific laws.
Evidence You Will Need
To successfully sue an insurance company for the infliction of emotional distress, you will need solid evidence supporting every element of your claim. This evidence could include:
- Medical records showing treatment for emotional distress
- Testimony from your doctor about your symptoms
- Records of counseling or psychotherapy
- Prescriptions for medications to treat anxiety, depression, or other symptoms
- Documentation of physical manifestations (headaches, stomach issues, etc.)
- A mental health diagnosis like anxiety or depressive disorder
- Testimony from your friends and family about changes in your emotional state
- Records related to your insurance claim and the company’s handling of it
- Statements from any experts supporting your position
- Texts, emails, letters showing the insurance company’s conduct
It’s critical to have medical records and testimony directly tying your distress to the insurance company’s specific actions. Without solid documentation that the insurer’s conduct – and not other factors – caused severe emotional distress, your case will face significant hurdles.
Statute of Limitations
There is a deadline for filing a lawsuit against an insurance company for emotional distress damages. This statute of limitations can range from one to six years depending on your state. In some states, the statute of limitations may not begin to run until the date your insurance claim was denied. An attorney can advise you on your state’s statutes and important deadlines for taking legal action. Acting promptly is essential.
Talk to an Attorney
Suing an insurance company for emotional distress is often complex and involves high legal standards. An experienced attorney can evaluate your situation and options. An attorney can also help gather evidence, negotiate a potential settlement, and handle your lawsuit if necessary. Working with legal counsel gives you the best chance of a successful resolution.
People Also Read: Why is SUTAB Not Covered by Insurance?
FAQs
Q: What qualifies as severe emotional distress when suing an insurance company?
To sue an insurance company for emotional distress, the distress must be severe. Symptoms can include severe anxiety, depression, panic attacks, uncontrollable crying, insomnia, PTSD, physical manifestations like headaches or stomach issues, and other debilitating effects. Minor stress or irritation will likely not be sufficient.
Q: What types of conduct by an insurance company could support an emotional distress claim?
Negligent handling of a claim, unreasonable delays, unfair denial of coverage, failure to investigate properly, harassment, misleading policyholders, or other extreme and outrageous conduct could potentially form the basis for an emotional distress suit against an insurer. The key is proving the company’s actions were unreasonable or intentional.
Q: Is there a time limit for suing an insurance company for emotional distress?
Yes, these claims are subject to the statute of limitations, which sets a deadline for taking legal action. The limitations period can range from 1-6 years depending on the state. It may run from the date of claim denial or other alleged misconduct. An attorney can advise on specific time limits. Acting before the statute of limitations expires is critical.
Final Enhance
Being denied insurance coverage you believe you’re entitled to can certainly be stressful. However, recovering emotional distress damages requires meeting stringent legal requirements. With the right evidence and legal representation, it may be possible to hold an insurance company accountable for the emotional toll of its allegedly wrongful conduct. But suing an insurer is never guaranteed. Speaking with an attorney can help you make an informed choice about the best path forward in your unique situation.
