
What is a Bad Faith Insurance Claim?
Even if you are not their customer, an insurance company has certain obligations to you under state law. Although every insurance company has their toolbox of tricks that they regularly use to make your life more difficult, there is such a thing as crossing the line. If they do, you can file a bad faith claim directly against the insurance company. While you may expect insurance companies to make lowball settlement offers and try to save themselves some money, you would still expect them to make good on their obligation to pay claims when a policyholder causes damages. A bad faith claim refers to situations where an insurance company tries to avoid its legal obligations by reneging on its obligation to pay. Insurance companies can engage in bad faith by:…