Bad Faith Claims

Insurance contracts include implied covenants of good faith and fair dealing in order to protect policyholders. These policyholders could be individuals with auto, boat, health, homeowners, or disability policies or business entities that carry various commercial policies.

When insurers deny, delay, or underpay claims for improper reasons, they may have committed bad faith. Courts regularly punish insurance companies for engaging in bad faith by ordering them liable to their insured for more than the amount of the initial claim. Some examples of bad faith include:

• Health insurer labeling a routine medical procedure as medically unnecessary in order to save costs.

• Disability insurer determining policyholder was not disabled because they continued to work a part-time role despite being unable to perform duties of full-time job due to illness.

• Auto insurer rescinding policy without providing notice to commercial policyholder.

• Life insurance company delaying payment for years to investigate routine death despite no evidence of foul play.

 

If you have had an insurance claim denied—regardless if it was a health insurance claim, life insurance claim, disability insurance claim, etc.—please give our firm a call before taking your next step.