Insurance Bad Faith

insurance policy form on desk in office showing risk concept

Bad faith practices of the insurance companies are quite widespread with respect to all types of coverages. Every insurance contract must be performed in good faith. If an insurance company fails to satisfy this obligation, it is in breach of the covenant of good faith and fair dealing embedded in an insurance policy.

Examples of bad faith include the wrongful denial of the claim and under-compensation for the insured (the person who is insured by the insurance company). If bad faith is shown and proven, the insured may be awarded contract damages, attorney’s fee and punitive damages (if malice, oppression or fraud is demonstrated).

Thus, if your insurance claim were not handled properly, you would need to contact an attorney to protect your rights given under the law.