Insurance Bad Faith Litigation

Insurance companies have the duty to act in good faith and to deal fairly with policyholders. Unfortunately, sometimes insurance companies are motivated more by profit than their legal and ethical duties to manage claims for their insureds. A claim of bad faith generally arises when an insurance company unreasonably refuses to meet its obligations under the insured’s policy. An insurance company may also be held accountable if it fails to honor commitments made by its agents, even if those commitments are not contained explicitly within the policy.

When you purchase insurance, your policy is a contract between you and your insurance company. Both parties to the contract are bound to the contract terms and are required by law to act in good faith. An insurance company that wrongfully denies a legitimate claim acts in bad faith and in breach of the contract. An insurance carrier, however, may have a right to deny a claim if you have not honored your obligation under the contract, by, for example, not paying your premiums, or by making a claim not covered by your policy.

We have helped individuals and their families with insurance coverage problems, including wrongful denial of benefits.

The following are among the bad-faith tactics insurance companies sometimes use:

  • Failure to promptly and thoroughly investigate a claim

  • Unreasonable denial of benefits owed to the insured

  • Unreasonable delay in payment of benefits to the insured

  • Use of harsh and intimidating negotiation tactics to get the insured to accept less than what he or she is entitled to

  • Failure to defend the insured against claims brought by others

  • Refusal to settle a case within policy limits, causing the insured to have to submit to a trial

  • Unreasonable interpretation of the policy language to justify the insurance company's failure to meet its obligations under the policy

If you believe that your insurance company is engaging in bad faith with your claim, please contact Bishop Friend, P.S.C. for a consultation. After the consultation, you will be informed whether the firm wants to take your case.