When you purchase an insurance policy you enter into a contract with your insurer while expecting them to act in good faith. However, when an insurance company acts in bad faith it can lead to more than just financial losses—it can result in significant emotional distress. But can you hold them accountable for this distress? The answer is complex, but in certain circumstances, you may have the right to sue for emotional distress. This article delves into the legal intricacies of such claims
Can I sue my insurance company for emotional distress?
Emotional distress is a form of mental suffering that can arise from a traumatic experience, serious injury, or wrongful acts, manifesting as anxiety, depression, insomnia, and other debilitating conditions.
Yes you can sue my insurance company for emotional distress. In the context of insurance, emotional distress often occurs when insurers act in bad faith, which can include denying valid claims without reason, unnecessary delays, lowball settlements, poor communication, and misrepresenting policy terms.
Legal Requirements for an Emotional Distress Claim
Negligent vs. Intentional Infliction of Emotional Distress
There are two primary types of emotional distress claims: negligent infliction of emotional distress (NIED) and intentional infliction of emotional distress (IIED).
NIED: Here, you must prove that the insurer acted negligently, causing you severe emotional distress, often accompanied by a physical injury or risk thereof (physical impact rule or zone of danger rule). This requirement ensures that the claim is genuine and not speculative.
IIED: This claim requires proving that the insurer acted intentionally or recklessly, with conduct that was extreme or outrageous, leading to your severe emotional distress. Unlike NIED, IIED does not necessitate a physical injury.
Judicial Precedents
The application of these standards in court has been inconsistent. For instance, the Arizona Supreme Court in Zilisch v. State Farm recognized NIED when an insurer unreasonably delayed a claim, causing emotional distress to a policyholder with a physical injury. Conversely, the California Court of Appeal in Chase v. State Farm Fire and Casualty found no liability for IIED in a case where a policyholder’s home was destroyed by fire, and the emotional distress was deemed not severe.
Evidence Required to Prove Emotional Distress
The success of an emotional distress claim hinges on credible and convincing evidence.
Medical Evidence: Medical records, bills, and reports are crucial. They document physical and mental injuries, treatments, and prognosis, demonstrating the nature and extent of emotional distress and related medical expenses.
Testimonials: Statements from yourself, family, friends, co-workers, or experts can describe the impact of your emotional distress and its linkage to the insurer’s actions.
Documentation of Insurer’s Actions: Correspondence, recordings, or other materials that reflect the insurer’s conduct are vital in establishing their fault or intent.
Supporting Evidence: Photographs, videos, journals, and social media posts can further illustrate the severity of your emotional distress.
Challenges in Presenting Evidence
Privacy Concerns: Medical records and personal documents might be subject to privacy laws. Obtaining necessary consents or authorizations is essential.
Relevance and Admissibility: Evidence must be relevant and meet legal admissibility standards. Overcoming objections from the insurer or court regarding these aspects is crucial.
Credibility: Establishing the credibility and reliability of your evidence is paramount, particularly against arguments or counter-evidence from the insurance company.
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Conclusion
Suing your insurance company for emotional distress is a complex legal challenge. It requires a thorough understanding of the legal principles, gathering substantial evidence, and often, navigating a maze of legal hurdles. If you believe you have suffered emotional distress due to your insurer’s bad faith actions, consulting with a legal professional specializing in insurance law can provide clarity and a path forward in holding the insurer accountable for their action.
