Chicago Insurance Lawyers: Fighting Wrongful Claim Denials & Bad Faith
When insurance companies prioritize profits over policyholders, Blumenshine Law Group steps in. We help Chicago families and businesses recover the compensation they are legally owed under Illinois law.
An insurance claim denial attorney is a legal professional who helps policyholders challenge wrongful rejections of insurance coverage. In Illinois, these lawyers use statutes such as 215 ILCS 5/155 to hold insurers accountable for “vexatious and unreasonable” delays or denials, helping victims recover life insurance proceeds, property damage costs, and bad-faith penalties.
Focused Insurance Litigation in Illinois
Insurance law is broad. Our firm focuses in three primary areas where policyholders are most vulnerable:
- Denied Life Insurance Claims: If you are a beneficiary facing a “misrepresentation” or “lapse” denial, our Life Insurance Denial Lawyers can help.
- Bad Faith & Claim Denials: When an insurer acts unreasonably, we utilize the Illinois Insurance Code to hold them accountable. Learn more about Bad Faith
- Property & Liability Disputes: We represent Chicago homeowners and business owners in complex property damage and CGL disputes.
Navigating Illinois Insurance Laws & Regulations
In Illinois, insurance companies have a “duty of good faith and fair dealing.” Most of our litigation centers on 215 ILCS 5/155, the statute that allows policyholders to recover attorneys’ fees and penalties when an insurer is “vexatious and unreasonable.”
In Chicago, insurance litigation is highly procedural. Most cases are filed in the Circuit Court of Cook County (Daley Center) or, for larger claims involving diverse parties, the U.S. District Court for the Northern District of Illinois. Our attorneys have navigated the unique local rules of these courts for nearly four decades. While the Illinois Department of Insurance (IDOI) provides a complaint portal, it is often a “non-binding” process. For policyholders seeking a mandatory payout, a formal legal filing is typically required to trigger an insurer’s duty to settle.
5 Common Tactics Insurers Use to Avoid Payouts
- Application Errors: Claiming you made a mistake years ago to void a current claim.
- Lack of Documentation: Demanding endless “proof” that doesn’t exist.
- Policy Exclusions: Stretching the definition of a “pre-existing condition” or “excluded act.”
- Vexatious Delay: Waiting months for a simple response to force a lower settlement.
- Illegal Lowballing: Offering a settlement far below the actual value of the loss.
Proven Results Against Major Insurance Carriers
“Recovered $XXX,000 in a bad faith dispute against a national carrier after a residential fire loss was denied.”
“Successfully overturned a life insurance denial based on a supposed policy lapse during the grace period.”
Comparing First-Party vs. Third-Party Claims in Illinois
| Feature | First-Party Claim | Third-Party Claim |
| Who is Sued? | Your own insurance company | The negligent person’s insurer |
| Legal Standard | Breach of Contract / Bad Faith | Negligence / Liability |
| Common Type | Life Ins., Homeowners, UIM | Car Accidents, Slip and Fall |
| Key Statute | 215 ILCS 5/155 | Illinois Negligence Law |
Filing a Claim
An insurance claim is made after you have sustained a loss. With our lawyers’ help, you may obtain insurance proceeds from an insurance company if the loss is insured. The loss may be:
- Death of a family member
- Bodily injury
- Physical destruction of all or part of your business
- Physical destruction of your home
- Physical destruction of another valuable property
Types of Insurance Claims
Your claim may be a claim against your insurance policy. A claim against your insurance company is known as a “first-party claim.” Examples of insurance policy claims against your own insurance company:
- Life insurance claims
- Disability insurance claims
- Business interruption insurance claims
- Property damage insurance claims: Chicago homeowners face unique risks that often lead to complex coverage disputes. We frequently assist clients in Cook County with claims involving:
- Frozen and Burst Pipes during Chicago winters.
- Wind and Hail Damage to roofs and siding.
- Sewer Backups and basement flooding, often a point of contention in older Chicago bungalows.
- Fire Damage restoration disputes.
- Theft insurance claims
You may have a claim against the insurance policy of an individual or company that caused your loss. A claim against another individual’s or company’s insurance policy is known as a “third-party claim.” Examples of insurance policy claims against another party’s policy include:
- Claim for injuries due to an auto collision
- Falling at a home or a place of business
- Damage to your property due to another’s negligence
When making an insurance claim, you are a lone claimant against a savvy, wealthy, experienced goliath – the insurance company. They can outmaneuver you in multiple ways. Our experience collecting insurance claims will help level the playing field.
Auto Insurance Claims
Auto insurance claims are a common type of insurance claim arising from vehicle accidents, collisions, or damage. If you have been involved in an auto accident, filing a claim with your insurer is often necessary to cover repairs, medical expenses, or other losses. It is important to report the accident promptly and provide accurate information to your insurance company.
Auto insurance claims can be complex due to the involvement of multiple parties, such as other drivers, insurance companies, repair shops, and medical providers. Insurance companies may seek to minimize payouts or delay claim processing. Having experienced legal representation can help ensure that your rights are protected and that you receive the compensation you deserve for injuries, vehicle damage, lost wages, and other related expenses.
If your auto insurance claim is denied or delayed, you have the right to request a detailed explanation and seek an independent review. Consulting with a skilled Chicago insurance lawyer can provide guidance on your options and help level the playing field against insurance companies.
What should I do if my insurance claim is denied?
If your insurance claim is denied, you can contact the company and ask for a detailed explanation of the reasons for the denial. If you are unsatisfied with their answer, you can ask for an independent review by a qualified professional. If the claim is still denied, you may want to consult with an attorney experienced in insurance law.
Chicago Insurance Lawyers Protecting Your Rights
Don’t let insurance companies dictate your outcome. Call or text Blumenshine Law Group today for a Free Consultation at (312) 766-1000 or email [email protected] and let our experienced Chicago insurance lawyers fight for the compensation you deserve. Schedule Your Free Consultation Now!
What if My Dispute Involves a Small Dollar Amount?
Not every insurance dispute requires a lawsuit. If your disputed amount is below $10,000 (the Illinois Small Claims Court limit) or involves a minor customer service issue, you may be able to resolve it without hiring an attorney.
- File a Complaint with the State: The Illinois Department of Insurance (IDOI) can investigate complaints against insurers for delays or denials. While they cannot compel a company to pay, their involvement often prompts insurers to review the claim again. You can file a complaint online at IDOI.Illinois.gov.
- Small Claims Court: For disputes under $10,000, Illinois Small Claims Court provides a simplified process for individuals to resolve conflicts without extensive legal fees.
When to Call Us: If your claim involves significant property damage, serious injury, or a ‘bad faith’ denial where the insurer is refusing to follow their own policy, contact Blumenshine Law Group. We handle complex claims where professional legal advocacy is necessary to recover what you are owed
Insurance Claim FAQs
How do I know if I need an insurance lawyer?
If your claim involves more than $50,000, is being delayed by more than 30 days without explanation, or has been formally denied, you should consult an attorney.
What should I do if my insurance claim is denied?
First, review the denial letter carefully for the specific reason provided. Gather all relevant documentation, then consult with a Chicago insurance lawyer. We can assess if the denial was ‘bad faith’ and help you file an appeal or lawsuit.
How long does it take to resolve a claim dispute?
Timelines vary by complexity. Some disputes are resolved in weeks via negotiation, while bad-faith litigation can take months. An attorney can provide a more accurate timeline after reviewing your specific case file.
What is insurance bad faith in Illinois?
Under Section 155 of the Illinois Insurance Code, bad faith occurs when an insurer’s conduct is ‘vexatious and unreasonable.’ This may allow you to recover attorneys’ fees and additional penalty damages in addition to your claim.
What are the most common reasons for a life insurance claim denial in Chicago?
Life insurance companies in Illinois often deny claims due to “material misrepresentation” on the application, supposed policy lapses during the grace period, or disputes regarding the cause of death. Our life insurance denial lawyers specialize in auditing the insurer’s records to prove the policy was active and the application was truthful.
Scott Blumenshine is an experienced Illinois trial attorney who has spent over 37 years helping clients resolve insurance claim denials and disputes. He is committed to holding insurance companies accountable when they fail to honor their policies.