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.