It is the responsibility of the insurance companies to assist policy holders with their claims. Their duties include investigating damages, determining if the damages can be covered, and paying the correct value for the damaged items or property. However, if an insurance company fails in its responsibilities by violating the duties put forth in its contract, it can be liable for what is commonly known as “insurance bad faith” which is a dirty trick utilized by insurance companies.
Generally, there are two types of “bad faith” cases:
- Claims where the insurer fails to pay a claim made by its own insured
- Claims where an insurance company fails to pay a third party who makes a claim against the company’s insured. It is important to note, that under the current statutory and case law, it is extremely difficult to prove bad faith and successful bad faith claims are relatively rare.
However, just because bad faith claims can be hard to prove, it does not mean you have to put up with an unethical insurance company. Given the complexity of bad faith claims, we recommend contacting a personal injury lawyer to discuss your specific situation.