Insurance Bad Faith

In the United States, insurance companies legally have an “implied covenant of good faith and fair dealing” duty to their clients. If the insurance company fails to deal fairly with you or act in good faith, you have grounds for a bad faith insurance lawsuit.


Insurance companies often don’t play by the rules. When an insurance company denies your claim or protection for the wrong reasons, you can be compensated for even more money, including your attorneys fees, for proving that your being wrongfully denied. If you need to ask anything about what is required by insurance companies and what constitutes bad faith, reach out to us to learn more.


Insurance companies are held to a high standard for a couple key reasons:


  • If an insurance company denies, undervalues or delays a claim, the policyholder could be ruined financially

  • Insurance companies can bring deep pockets, teams of lawyers and extensive negotiating experience to bear against their policy holders, making disputes a very unfair fight


Bad Faith Examples


You may have a bad faith insurance case if:

  • The insurance company undervalued or denied your claim after failing to adequately investigate your property damage

  • The insurance company intentionally misinterpreted or inaccurately represented their own policy to minimize the cost of your claim

  • They took an unreasonable length of time to pay your claim

  • Your claim was denied but you weren’t given a satisfactory reason


Bad faith lawsuits can also be brought against an insurance company by defendants in personal injury cases. If the insurance company is obligated to defend a policyholder from a liability lawsuit and they fail to do so or don’t meet their duty to the policyholder, the policyholder may be able to file a bad faith insurance lawsuit against the insurance company.


If you or someone you know has a potential bad faith claim, reach out to an experienced Bad Faith Insurance lawyer to learn more.