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What is Bad Faith?

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As an insured policy holder, knowing you have the coverage you need in case of an accident offers peace of mind. As you pay your policy; whether it’s homeowners, auto, or medical, you expect your insurance company to hold up their end of the policy when you need coverage. Too often, claims get denied, with little to no explanation.You may hear of instances when an insurance company acts in “bad faith.” Bad Faith is a term describing blatantly unfair conduct that exceeds mere negligence by an insurance company. For example, a bad faith claim may arise if an auto liability insurer arbitrarily refuses to settle a claim within policy limits, where an insured’s liability is incontrovertible. Bad faith damages, also known as extracontractual damages, are often substantial. They frequently exceed the limits of the insurance policy that is the subject of the claim.There are a number of elements that could constitute bad faith practices.

  • Excessive delay in responding to a claim for coverage
  • Unjustified denial of coverage
  • Falsely stating what a customer’s policy covers or the facts surrounding a denial of coverage
  • Failing to provide prompt or adequate reasoning on why a claim was denied
  • Failing to make a good faith attempt at settling a claim where the insurer is reasonably covered
  • Illegally altering insurance documents or an application without the policyholder’s knowledge and using altered documents for justification of denying the claim.
  • Nullifying or canceling a policy in order to avoid paying a valid claim

Let’s imagine you were in an auto accident and the other party was at-fault. You go through the process of submitting your claim, you go to the hospital to get evaluated, you missed work due to injury, you go to a mechanic to repair the damage to your car, etc. Then you find out that the other party’s insurance is stating that you were at-fault with no justification, and that your claim is denied. You’re now confused, frustrated, and more overwhelmed than you were before.

If you’ve been unjustly denied coverage, you need an experienced attorney with the knowledge of handling bad faith insurance cases. Mounting a legal fight against an insurance company, especially one that has already demonstrated unfair tactics, is not something you should attempt on your own. McMullin Injury Law is dedicated in helping you get your claim settled fairly and timely. We hold companies accountable and help you secure the compensation you are rightfully owed.

The compensation you receive in an insurance bad faith case could help you pay for expenses including lost wages, medical fees, rehabilitation costs, and property damage expenses. If you’ve been in a serious accident or faced losses and property damage, the financial support provided by an insurance policy can be your only lifeline. If your claim is denied, call McMullin Injury Law today. We offer free consultations with our attorneys. We will go to work for you to make sure your claim to rightfully covered and you are made whole.