26 May. 2016

What is Bad Faith Insurance?

Posted By Haggerty, Goldberg, Schleifer & Kupersmith, P.C.

Insurance bad faith is a type of tort claim that an insured individual may bring against their insurer for a number of reasons. Insurance companies have a duty to act in good faith when dealing with those they insure, which means that they are required to handle cases in an honest, fair, and efficient manner. This is what is referred to as the “implied covenant of good faith and fair dealing.” If an insurance company violates this covenant by acting in a deceptive or malicious manner to avoid fulfilling their contractual obligations, a policyholder can bring legal action against the company seeking compensation for the face value of their policy. In cases involving particularly malicious or intentional behavior, the plaintiff may be able to recover a greater amount.

The following are some examples of insurance companies acting in bad faith:

  • Failing to acknowledge or reply upon notification of a covered claim in a timely manner
  • Discounting, delaying, or denying payment without any legitimate basis
  • Failing to properly investigate a claim, leading to a denial of coverage
  • Attempting to settle a claim on the basis of a policy that was altered without notifying the insured person or gaining their consent
  • Requesting over burdensome documentation demands that a policy does not require
  • Using fraudulent, illegal, or harassing investigational methods
  • “Lowballing” the value of a claim without justification
  • Failing to comply with industry standards

James C. Haggerty, Esquire and Suzanne Tighe, Esquire of HGSK routinely become involved in claims against insurance companies who have mistreated or taken advantage of individuals. If you feel that you have been mistreated by an insurance company, contact the attorneys at Haggerty, Goldberg, Schleifer & Kupersmith, P.C. to see if you have grounds for a bad faith claim against your insurer. We are prepared to investigate your case and file a claim on your behalf.

To contact a Philadelphia lawyer at our firm, please call (267) 419-6422. Free initial consultations are available.

Categories: Insurance Bad Faith
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