Insurance Bad Faith


When you face a difficult or complicated legal matter, such as the wrongful denial of an insurance claim, you need an attorney with experience. When facing an insurance company, you want a lawyer who knows the process and who will stand strong as the insurance company attempts to minimize or avoid paying your claim.

Insurance companies must have a reasonable basis to deny a claim. They often don’t. The law forbids insurers from acting in bad faith toward their insured individual. But sometimes insurers do it anyway. Being a mere policyholder up against a large insurance company can be a very frustrating experience.

After an unfortunate event occurs, most people feel they are at the whims of their insurers and their insurers’ reading and interpretation of the insurance policy. If your insurer denies coverage, it is too late to buy another insurance policy like the one you thought you bought in the first place. Because of the nature of insurance, the law places special requirements on insurance companies. They are required to exercise fairness in writing and issuing their insurance policies as well as to act fairly and reasonably in handling claims made by their policy holders.

If your insurance company does not abide by the rule of law and mistreats you, the company may be held accountable to you not only for the insurance policy benefits, but also for additional compensatory damages and attorney fees. In particularly egregious cases, insurance companies may even have to pay punitive damages meant to punish the insurance company for acting in “bad faith.”