Insurance Disputes After Personal Injury

After a serious injury, you count on insurance to be there when you need it most. Unfortunately, insurers don’t always play fair. Insurance disputes in personal injury cases happen when a company denies coverage, delays payment, undervalues your claim, or acts in bad faith—putting profits ahead of policyholders. These tactics can leave injured people with mounting bills, lost wages, and no clear answers.

At Liss, Shapero & Mitnick, we’ve been protecting the rights of injured people in Berkley and Metro Detroit for over 25 years. We understand Michigan’s insurance laws and know how to hold insurers accountable when they break the rules. Whether your auto insurer is stalling on no-fault benefits, your homeowner’s carrier is disputing liability, or a third-party insurer is lowballing your settlement, our team is ready to step in.

As Berkley’s Community Law Firm, we’re not a volume-driven practice. We’re a close-knit team deeply rooted in the local community—neighbors, parents, and volunteers who understand what’s at stake for your family. Our guiding principle—Your Rights First—means you’ll get direct access to attorneys, clear explanations of your options, and relentless advocacy until the dispute is resolved.

If an insurance company is dragging its feet or denying your benefits after an injury, you don’t have to take them on alone. Liss, Shapero & Mitnick can review your policy, explain your rights, and fight to get you the coverage and compensation you’re owed.

Common Types of Insurance Disputes We Handle

Denial of Claims

Carriers sometimes deny valid personal injury claims by citing exclusions, blaming a pre-existing condition, or disputing liability. We analyze your policy language, gather medical and factual proof, and challenge improper denials through appeals, negotiation, or litigation.

Delay of Payments

Endless “investigations,” repeated document requests, or unreturned calls are classic delay tactics. We force timelines, escalate to supervisors, and—when necessary—file suit to obtain overdue no-fault benefits, medical reimbursements, wage loss, or other owed payments.

Low Settlement Offers / Undervaluation of Damages

Insurers frequently undervalue medical treatment, future care, lost wages, scarring, and pain and suffering. Our team builds a complete damages package using records, billing audits, expert opinions, and visual evidence so the carrier must account for the full impact of your injuries.

Bad Faith Practices by Insurers

Unreasonable denials, misrepresenting coverage, ignoring clear evidence, or failing to investigate can cross the line into bad faith. We document the conduct, preserve communications, and pursue all available remedies under Michigan law to hold the insurer accountable.

Rescission or Policy Cancellation

Some carriers try to escape liability by rescinding a policy or canceling coverage after a claim—often alleging application errors or omissions. We scrutinize the timeline, the application, and statutory requirements to contest improper rescission and restore your benefits.

Understanding Your Rights Under Michigan Law

When an insurance company delays, denies, or low-balls a legitimate claim, Michigan law gives you tools to fight back. While Michigan doesn’t recognize a broad, stand-alone “first-party bad faith” tort the way some states do, several statutes and regulations require insurers to act fairly—and they impose penalties when they don’t. Here’s what that means for you.

What legal protections exist against bad faith?

• Unfair claim practices are prohibited. Michigan’s Insurance Code identifies conduct that shows a “persistent tendency” toward unfair claim settlement practices—like failing to investigate promptly or not attempting prompt, fair, and equitable settlements when liability is clear. These rules are enforced by the Department of Insurance and Financial Services (DIFS).
• Penalty interest for late payments. If a claim isn’t paid on time, the insurer can owe 12% interest on overdue amounts. This applies broadly under the Insurance Code and, separately, in the no-fault context (see below).
• Attorney fees for unreasonable refusals/delays (No-Fault/PIP). In auto cases, if a court finds an insurer unreasonably refused or delayed paying overdue PIP benefits, the insurer can be ordered to pay your reasonable attorney fees on top of the benefits owed.
• 12% interest on overdue No-Fault benefits. PIP benefits are overdue if not paid within 30 days after the insurer receives reasonable proof of the loss; overdue payments accrue 12% simple interest per year.
• Third-party “bad faith” failure to settle. Michigan law recognizes actions against a liability insurer that unreasonably refuses to settle within policy limits and exposes its insured to an excess verdict.

Statutes & regulations that require fair claims handling

• Unfair Claim Settlement Practices – MCL 500.2026. Lists conduct that may show an insurer’s persistent tendency to act unfairly in claims (e.g., not investigating promptly or failing to make good-faith settlement efforts). 
• Timely Payment / 12% Interest – MCL 500.2006. Requires timely payment of policy benefits; otherwise, the insurer owes 12% interest (with nuances for third-party claims). 
• Overdue PIP Benefits – MCL 500.3142. Sets the 30-day rule for paying no-fault benefits after receiving reasonable proof and imposes 12% interest on overdue amounts. 
• Attorney Fees for Unreasonable Delay/Denial – MCL 500.3148(1). Allows fee-shifting against auto insurers who unreasonably refuse or delay PIP payments. 

FAQ: Insurance Disputes in Michigan (Berkley, MI)

What is “bad faith” insurance conduct under Michigan law?

“Bad faith” generally means an insurer unreasonably denies, delays, or undervalues a claim; misrepresents policy terms; fails to investigate; or ignores clear evidence. In Michigan, these actions can support remedies under contract law and insurance regulations (including penalty interest for overdue benefits), even though there isn’t a single catch-all “bad faith statute.” We document each violation and pursue every remedy available—Your Rights First.

How long does an insurance company have to respond to a claim?

Insurers must handle claims promptly and pay covered benefits within a reasonable time after receiving adequate proof. For auto no-fault (PIP) benefits, payment is often due 30 days after reasonable proof of loss; late payments can trigger penalty interest. Timelines can vary by coverage and policy—call us so we can enforce the right deadline for your claim.

Can I sue my insurance company for acting in bad faith?

Yes. In Michigan you can sue for breach of contract and, when supported by the facts, for statutory/regulatory violations or fraud/misrepresentation. Courts can award penalty interest on overdue benefits and other damages tied to the wrongful denial or delay. We assess your policy, the claim file, and communications to build the strongest case.

What’s the risk of signing a settlement release too early?

A release can waive future claims, including ongoing medical bills, wage loss, or pain and suffering you haven’t fully calculated yet. Some releases also authorize broad record access or restrict future coverage disputes. Let us review any proposed release—we negotiate language that protects you.

How much does it cost to hire LSM for an insurance dispute?

Your consultation is free. We typically work on a contingency fee, so you don’t pay attorney fees unless we recover benefits/compensation for you. We explain fees and potential costs up front, in writing, so there are no surprises.

Contact Berkley Insurance Dispute Lawyers Today – Free Consultation

If your insurer is denying, delaying, or lowballing your claim, we’ll step in and put Your Rights First.

Call: 248-584-1300 • Toll-Free: 1-855-LISS-LAW (547-7529)
Visit: Liss, Shapero & Mitnick, 2695 Coolidge Highway, Berkley, MI 48072
Hours: Mon–Fri, 9:00 AM–5:00 PM (after-hours by appointment)

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No pressure. No upfront fees. If we don’t recover compensation/benefits for you, you don’t pay attorney fees. As Berkley’s Community Law Firm, we’re ready to help today.

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