Insurance Bad Faith

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Insurance companies have a duty of good faith and fair dealing with their insureds which is also known as an implied covenant of good faith and fair dealing.

Customers rely on insurance companies to pay claims in a fair and reasonable manner. Further, insureds expect their insurance company to act in their best interests when claims have been made against them for their negligent acts. For instance, if you mistakenly rear-end someone, you expect your insurance company to pay for the damages you caused. Insurance companies have a contractual obligation under the terms of your insurance policy to pay claims in a reasonable manner. Unfortunately, insurance companies also have an incentive to pay less on claims in order to improve their bottom line.

When these circumstances arise you may need an Insurance bad faith attorney to file a claim on your behalf.

The types of insurance bad faith issues the attorneys at Wheeler & Watson, PC are prepared to handle include:

  • Homeowners insurance
  • Automobile Insurance
  • Disability Insurance

Insurance companies must also take all reasonable steps to properly evaluate insurance claims and make a reasonable attempt to settle those claims when they can.

For instance, if it is in the insured’s best interest to settle a claim within policy limits, their insurance company has a duty to accept a demand for settlement within the policy limits.

An insurance company’s failure or refusal to pay a policy limits demand when it is reasonable to do so may subject the insurance company to a claim of bad faith.

When Do I File an Insurance Bad Faith Claim?

If you are facing a legal issue regarding an insurance policy, it is important to act quickly. Claim limits can have time constraints. Taking any legal action quickly can give you an advantage in a bad faith claim.

Always keep in mind, as the policy holder you must be diligent to comply with all duties and responsibilities under your policy. Failure to do so may forfeit your right to sue the insurance company for their bad faith actions.

Please contact the Attorneys at Wheeler & Watson, PC for a free confidential consultation regarding your potential bad faith insurance claim.