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Insurance Bad Faith

Insurance Consultation

Insurance Bad Faith

In legal circles, “bad faith” implies that an insurance company has attempted to renege on its obligations by denying qualified claims on insurance coverage. Other practices that are considered acts of bad faith may be classified depending on the type of insurance claim.

 

First-Party Claims

An insurance company may have inauspicious responses to your claims for property, health, and other personal insurance coverage.

  • Failing to properly investigate a claim

  • Undue delay in processing a claim

  • Offering an unusually low settlement amount

  • Unreasonable denial of a valid claim

  • Paying only partial benefits

Third-Party Claims

Among your insurer’s obligations is to protect your policy against third-party claims (e.g., when a person sues you for personal injury or damages to his or her property due to an accident you are suspected of causing). The following are signs that they are committing bad faith practices:

  • Failing to defend you against a third-party claim

  •  Non-payment of legal defense costs

  • As a policyholder you are entitled to file a personal injury claim. First, your bad faith insurance attorney at Castro Legal Group will help you recover damages for breach of contract, which can include the benefits due under the policy, as well as interest.

  • You may also be able to recover bad faith damages, which would include economic losses, emotional distress, and legal fees. In some cases, you may even be able to secure punitive damages if there’s evidence an insurer acted in malice or fraud.
    Your lawyer will know exactly what to do when the insurance company refuses to negotiate in good faith. We will work to see you receive the full value of what you are owed under the law.