What is Insurance Company Bad Faith?

The classic insurance company advertisement features a lovely American family, going through some tough time, maybe a house fire or a car accident.  And there is the friendly insurance company representative, showing up to save the day.  And everyone lives happily ever after, right?
Come on.

Insurance companies are in the business of making money, let’s face it.  And the business of insurance is to take in more premiums than claims being paid.  That means insurance companies are really in the business of not paying claims.  That’s how they maximize their profits.

Insurance companies are certainly allowed to make money. But the law requires these companies to act in good faith with the people they insure.  There are rules and regulations for insurance companies that help us hold insurance companies accountable when they take advantage of their policy holders.  These rules and regulations, taken together, help us fight back against insurance bad faith.  Insurance companies have to act in good faith when selling insurance, when deciding whether to cover a claim and in handling how a claim settlement is negotiated.

If it seems like your insurance company is trying to cheat you, that’s exactly what may be taking place.  When a claim should be paid but the insurance company refuses, that’s bad faith. Or, if the insurance company is delaying the proper handling of a claim and this results in property damage, for example, this may be an example of bad faith, too.

What happens if they do?

If you feel your insurance company has acted in bad faith let us know by contacting us for a free consultation. If we are a good fit for each other our lawyers will fight to get you the outcome you deserve.